Regulatory Alerts2016-04-06
C4/2016: Implementation of the Capital Conservation Buffer
The Office of the Registrar of Banks requires South African banks to phase in a 2.5 percent capital conservation buffer between January 2016 and January 2019, funded entirely by common equity tier 1 capital and reserve funds. Institutions operating within this buffer range face mandatory restrictions on capital distributions until their minimum capital adequacy ratio is restored. The circular establishes year-specific capital adequacy ranges and distribution limits for 2016 through 2019, incorporating countercyclical buffers and Pillar 2A add-ons to guide regulatory compliance and future capital planning.
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