Basel II Industry Training for South African Banks

[Logo: South African Reserve Bank] South African Reserve Bank From the Office of the Registrar of Banks

Confidential

2007-04-02

Banks Act Circular 2/2007

To all banks, branches of foreign banks and mutual banks

Basel II – Industry training

South Africa has been preparing extensively for the implementation of the new capital accord, Basel II, on 1 January 2008. Basel II has necessitated significant amendments to the legal framework in South Africa, specifically affecting the scope and complexity of the statutory returns and directives. This Office therefore recognises the need for training within the banking industry.

In conjunction with the Accord Implementation Forum, this Office is now in a position to offer training on the Proposed amended Regulations relating to Banks (the Proposed Regulations). Relevant sessions will be led by members of this Office and a wide variety of industry specialists. The purpose of the training will be to provide attendees with a comprehensive overview of the Proposed Regulations. A thorough understanding of the current Regulations relating to Banks and a basic understanding of the Basel II framework will be essential.

This Office is aiming to release Draft 4 of the Proposed Regulations for public comment on 30 April 2007 and this will form the basis for the training. Hard copies of Draft 4 (Public comment) will be distributed at the workshop and will be included in the cost.

Three industry training sessions will be held at the Conference Centre of the South African Reserve Bank’s Head Office in Pretoria. The dates are as follows:

• 16 – 18 May 2007
• 6 – 8 June 2007
• 1 – 3 August 2007

The cost of the workshop will be R1 500,00 (VAT included) per attendee, which will include workshop material.

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PO Box 8432 Pretoria 0001 • 370 Church Street Pretoria 0002 • South Africa • Tel +27 12 3133911 • Fax +27 12 3133758 • www.reservebank.co.za

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The following programme will apply to each of the three industry training sessions:

Day 1:

08:00 – 08:30	Registration
08:30 – 09:15	Welcome<br>Regulations 1 – 17
09:15 – 10.30	Regulations 18 – 22
10:30 – 11:00	Break
11:00 – 12:30	Regulations 23 – 25
12:30 – 13:30	Lunch
13:30 – 15:00	Regulations 23 – 25 (continued)
15:00 – 15:30	Break
15:30 – 17:00	Regulations 23 – 25 (continued)

Day 2:

08:30 – 10:30	Regulations 26 – 32
10:30 – 11:00	Break
11:00 – 12:30	Regulations 26 – 32 (continued)
12:30 – 13:30	Lunch
13:30 – 15:00	Regulations 33 – 34
15:00 – 15:30	Break
15:30 – 17:00	Regulation 35 and the Exemption Notice<br>relating to Securitisation Schemes

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Day 3:

08:30– 10:00	Regulations 36 – 37
10:00 – 11:00	Regulation 38
11:00 – 11:30	Break
11:30 – 13:00	Regulations 39 – 60
13:00 – 14:00	Lunch
14:00 – 15:30	Regulations 61 – 64
15:30 – 16:00	Break
16:00 – 16:30	Regulations 65 – 67
16:30 – 17:00	Conclusion

Prospective attendees must please notify this Office of their attendance by completing the attached registration form and returning the same to this Office BEFORE 26 APRIL 2007.

Acknowledgement of receipt

Two additional copies of this circular are enclosed for the use of your institution's independent auditors. The attached acknowledgement of receipt should be returned to this Office as soon as possible, duly completed and signed by both the chief executive officer of the institution and the said auditors.

[Signature] E M Kruger Registrar of Banks

The previous circular issued was Banks Act Circular 1/2007 dated 26 March 2007.

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Basel II Training South African Reserve Bank, Head Office, Pretoria REGISTRATION FORM

Institution: ........................................................................................................................... VAT number: ........................................................................................................................ Surname: .............................................................................................................................. First name: ........................................................................................................................... Job title: ............................................................................................................................... Telephone number: ............................................................................................................... Facsimile number: ................................................................................................................ E-mail address: .................................................................................................................... Car registration number: ....................................................................................................... Dietary requests: Please list any special dietary needs (vegetarian, etc.) : ..............................................................................................................................................

Select one of the options below. Please note that seats are limited.

16 to 18 May 2007 [ ] 6 to 8 June 2007 [ ] 1 to 3 August 2007 [ ]

Completed forms should be e-mailed or faxed to

Nicolette.VanZyl@resbank.co.za Fax: (012) 313-3758

BY 26 APRIL 2007

You will receive confirmation in due course. If confirmation has not been received within 7 days of the event, contact Mrs Nicolette van Zyl at (012) 313 4283.

Banking Information: A swift payment can be made to the South African Reserve Bank at any registered bank to account number 8061170. Please quote your name as reference.