Regulatory Alerts2015-03-27
Matters Related to Specified Minority Interests in Shares and Instruments Qualifying as Capital
The South African Reserve Bank’s Office of the Registrar of Banks issues Circular 3/2015 to amend the prescribed treatment for calculating surplus capital attributable to minority interests in shares and instruments qualifying as capital. Effective 1 April 2015, the circular establishes that relevant minimum capital requirements for CET1, AT1, and T2 must align with South African base minima including Pillar 2A and applicable buffers while excluding bank-specific individual capital requirement add-ons. Institutions must consolidate subsidiary capital calculations using these updated parameters and return signed acknowledgement forms from their chief executive officers and independent auditors.
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