Regulatory Alerts2020-03-31
D1/2020 Temporary Measures to Aid Compliance with the LCR During the COVID-19 Pandemic Stress Period
The Prudential Authority has temporarily reduced the minimum Liquidity Coverage Ratio requirement for South African banks from 100 percent to 80 percent. Effective from 1 April 2020, this directive provides immediate liquidity relief during the COVID-19 pandemic stress period to counteract market volatility and declining high-quality liquid asset values. The reduced threshold remains in force until financial markets normalize, at which point the Prudential Authority will implement phased arrangements to restore the 100 percent standard.
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