Regulatory Alerts2013-06-27
C5/2013: Reporting of Items Subject to Thresholds Not Fully Deducted from Qualifying Capital and Reserve Funds
The South African Reserve Bank’s Office of the Registrar of Banks issued Circular C5/2013 to clarify statutory reporting requirements for risk-weighted exposures arising from threshold items not fully deducted from qualifying capital and reserve funds. The circular mandates that banks report these exposures on specific regulatory forms, designating trading book investments to market risk returns, banking book investments to equity risk returns, and significant holdings in unconsolidated financial institutions, mortgage servicing rights, and deferred tax assets to form BA 700. It explicitly prohibits duplicate reporting of these amounts on credit, market, or equity risk returns except as memorandum items, ensuring consistent capital adequacy calculations under the 2013 Regulations relating to Banks.