Regulatory Alerts2015-08-07
G4/2015 South African Reserve Bank Guidance on Stress Testing and Internal Capital Adequacy
The Bank Supervision Department of the South African Reserve Bank requires banks to embed stress testing into their core governance and risk management frameworks, ensuring results directly inform strategic board and senior management decisions. Institutions must maintain robust, flexible infrastructure that executes comprehensive forward-looking scenarios and reverse stress tests across firm-wide risks, liquidity pressures, complex products, and reputational exposures. These stress testing requirements must be scaled to each bank’s size and complexity while ensuring independent, regular assessment of programme effectiveness.
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