Annexure A

Directive in terms of Section 6(6) of the Banks Act 1990 – The application of capital floors

The calculation of capital floors

1. Purpose

The purpose of this directive is to provide a framework for the calculation of the capital floor introduced under the transitional arrangements as envisaged under the International Convergence of Capital Measurement and Capital Standards, A Revised Framework (Basel II) issued in June 2006.

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Name of Bank:
Date:

Amount R'000	RWA %	RWA	Capital at 10%	Other notes
Total assets as per BA 100				1
Adjustment: set-off
Less:
- balances to cash, SARB and govt bonds/sovereigns		0%	0
- balances in respect of cash management schemes		0%	0
- deferred tax not arising from assessed losses		0%	0
- balances with cash pledges		0%	0
- balances to group banks		0%	0
- balances in relation to trading book (not risk weighted on DI100)		0%	0
- balances to public institutions		10%	0
- balances to banks		20%	0
- balances in respect of residential mortgages (<80% LTV)		50%	0	2
- securitised assets
- other classifications (including net reclassifications)		0%	0
		10%	0
		20%	0
		50%	0
		150%	0
- balances remaining at 100%	0	100%	0
- large exposures (>25% of capital)		100%	0
- counterparty risk banking book			0
Total on-balance sheet			0

Plus: off-balance sheet

- indemnities & guarantees		10%	0
- indemnities & guarantees		20%	0
- indemnities & guarantees		50%	0
- indemnities & guarantees		100%	0
- committed facilities		5%	0
- committed facilities		10%	0
- committed facilities		20%	0
- committed facilities		50%	0
- committed facilities		100%	0
- letters of credit		5%	0
- letters of credit		10%	0
- letters of credit		20%	0
- net open currency positions per (old) regulation 33(5)		100%	0
- contracted capital expenditure		20%	0
- underwriting exposures		50%	0
- credit derivatives		10%	0
- credit derivatives		100%	0
- other contingent liabilities		20%	0
- other contingent liabilities		50%	0
- other contingent liabilities		100%	0
Total off-balance sheet			0

Total on-balance sheet plus off-balance sheet | | | 0 | 0 |

Plus: trading book capital requirements

- base requirement
- counterparty risk
- position risk
- large exposure requirement

Total capital requirement (@10%) based on the prescriptions of the Regulations relating to banks as published in the previous Regulations relating to banks | | | 0 | para 46 |

Plus

- Impairments against primary and secondary capital in terms of previous Regulations relating to banks				para 46

Less

- General provisions qualifying as capital				para 46

Calculated amount per para 46 | | | 0 | | Floor percentage | | | 95% | | Capital floor | | | 0 | |

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Name of Bank:
Date:

Amount R'000	RWA %	RWA	Capital at 10%	Other notes
Compared to
- Capital required per BA700 (line 11, column 6)				para 47
Less
- Difference between total provisions and EL recognised as capital per BA 700 (line 75, column 1)			0	para 47
Plus
- Deductions against primary and secondary capital per BA 700 (line 14, column 4)				para 47
			0
Additional requirement due to capital floors			0

General Notes

• Please refer to the conditions as per the directive

Additional Notes

1. Instances where IFRS netting is different from regulation 13 (reg 12 in the previous Regulations) set-off.
2. Covering instances where IFRS does not permit securitised assets to be derecognised even though in compliance with the exemption notice.