Regulatory Alerts2025-07-30
C4-2025 Basel III Post-Crisis Reforms Reporting
The South African Reserve Bank issued Circular C4-2025 to mandate the calibration and reporting of the Basel III post-crisis output floor for all banks, controlling companies, and foreign branches. The directive requires institutions to calculate the floor at every relevant tier on a consolidated basis, applying phased-in percentages that escalate from 60 percent in July 2025 to 72.5 percent by January 2028. This standardized approach establishes a lower bound for risk-weighted exposures, thereby reducing capital ratio variability and ensuring consistent regulatory compliance across the banking sector.
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