Regulatory Alerts2024-09-13
Joint Communication 6 of 2024: Financial Institutions’ Transition from JIBAR to ZARONIA
The Prudential Authority and Financial Sector Conduct Authority require South African financial institutions to proactively prepare for the discontinuation of the Johannesburg Interbank Average Rate (JIBAR) and its transition to the preferred successor rate, ZARONIA. Institutions must implement board-approved, enterprise-wide transition programmes that encompass comprehensive risk assessments, technological and process upgrades, ZARONIA-based product strategies, contractual fallbacks, and robust governance frameworks. Senior executives are expected to actively monitor these risks and execute targeted actions ahead of the South African Reserve Bank’s final JIBAR cessation date.
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