Regulatory Alerts2016-03-15
G3/2016: Credit risk and accounting for expected credit losses
The South African Reserve Bank’s Office of the Registrar of Banks issues this guidance note to align domestic banking supervision with Basel Committee standards on expected credit loss accounting. Banks must evaluate their existing risk management frameworks against these international principles, implement robust credit impairment calculation systems, and establish board-approved policies to identify deteriorating assets early. Institutions are required to develop remediation plans for identified deficiencies, maintain additional capital when necessary, and return signed acknowledgment forms to the Registrar alongside their independent auditors.
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