Regulatory Alerts2022-02-14
D1-2022: Liquidity Coverage Ratio – Scope of Application, Calculation and Disclosure
The Prudential Authority of the South African Reserve Bank has issued Directive D1-2022 to establish the scope, calculation methodology, and disclosure requirements for the Liquidity Coverage Ratio across all South African banks, foreign branches, and controlling companies. The directive mandates that institutions maintain sufficient high-quality liquid assets to withstand a 30-day liquidity stress scenario by calculating and reporting the LCR on both solo and consolidated bases in Rand. It further standardizes consolidation rules, caps intragroup inflows at 75 percent, requires quarterly public disclosures aligned with Directive D1/2019, and replaces the previous 2014 directive to ensure regulatory consistency.
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