Regulatory Alerts2016-11-28
Capital Framework for South Africa Based on Basel III (D6/2016)
The South African Reserve Bank’s Registrar of Banks issued Directive 6/2016 to implement and phase in South Africa’s Basel III-aligned capital framework for all licensed banks and controlling companies. The directive establishes minimum capital-adequacy ratios, capping the combined systemic risk and domestic systemically important bank requirements at 3.5 percent while mandating capital conservation buffers that restrict discretionary payments when ratios breach prescribed thresholds. Banks must follow a structured phase-in schedule concluding in January 2019, maintain discretionary capital buffers above minimum levels, and refrain from publicly disclosing bank-specific individual capital requirements.
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