Regulatory Alerts2020-01-01
Prudential Standard No. 01-2020/BSD - Framework for Dealing with Domestic Systemically Important Banking Institutions
The Reserve Bank of Zimbabwe has issued Prudential Standard No. 01-2020/BSD to establish a comprehensive framework for identifying and designating Domestic Systemically Important Banking Institutions (D-SIBs). The standard mandates a quantitative assessment based on size, interconnectedness, substitutability, and complexity to assign banks to Higher Loss Absorbency capital buckets ranging from 1% to 3.5% of risk-weighted assets, supplemented by liquidity coverage and recovery planning requirements. Designated D-SIBs must maintain a minimum 12% capital adequacy ratio with Tier 1 buffers, face distribution restrictions when capital dips below thresholds, and comply with enhanced annual disclosure and supervisory monitoring protocols.
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