Regulatory Alerts2013-01-30
Treatment of Specified Minority Interests in Shares and Instruments Qualifying as Capital
The South African Reserve Bank’s Office of the Registrar of Banks prescribes the calculation methodology for surplus capital attributable to minority interests in shares and instruments qualifying as capital at a consolidated level. Banks must apply South African minimum requirements for common equity tier 1, additional tier 1, and tier 2 capital, including relevant buffers and haircuts, to determine the qualifying portion of subsidiary capital net of deductions. Institutions are required to return a duly completed and signed acknowledgement from both the chief executive officer and independent auditors to finalize compliance with this circular.
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