Regulatory Alerts2020-09-09
G8/2020: Continued Provision of the CLF and Introduction of a Restricted-Use CLF
The South African Reserve Bank issues Guidance Note 8/2020 to maintain the Committed Liquidity Facility for banks meeting liquidity coverage ratio requirements while phasing it out by December 2021. The document introduces a Restricted-Use Committed Liquidity Facility available to all banks from December 2020, specifying identical collateral eligibility, a 75 basis point commitment fee, and strict reporting limits within Level 2B High Quality Liquid Assets. Banks must apply by September 2020, adhere to revised capital and special-purpose institution reporting rules, and pay a drawdown rate equal to the repo rate plus 100 basis points for any utilized funds.
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