Regulatory Alerts2012-12-21
Added · Updated
D3/2012 Transitional Arrangements for Capital Requirements on Over-the-Counter Derivatives Not Transacted Through a Central Counterparty
The South African Reserve Bank’s Office of the Registrar of Banks has issued Directive D3/2012 to establish transitional capital requirements for over-the-counter derivatives not cleared through a central counterparty. Effective from 1 January to 31 December 2013, South African banks must apply zero percent capital to the Credit Valuation Adjustment risk component for rand-denominated and locally bilateral OTC derivatives while maintaining standard default risk calculations. This temporary reduction lowers the total capital burden for these specific trades and supports domestic clearing without altering other Basel III-aligned regulatory frameworks.
More like this from SARB
SARB published 1 document in the last 30 days. We email you each new one the day it's published.