2022-07-01

Prudential Authority Directive D5-2022 on Liquidity Risk Requirements

The Prudential Authority issued Directive D5-2022 to clarify liquidity risk requirements for South African banks, controlling companies, and foreign branches. The directive mandates that institutions maintain sufficient group-level liquidity buffers to offset shortfalls in foreign entities' compliance with minimum Liquidity Coverage Ratio and Net Stable Funding Ratio thresholds without requiring formal condonation. It further standardizes the calculation period for liquid assets reported on form BA 325 to span from the fifteenth business day of the current reporting month through the fourteenth business day of the subsequent month, while requiring signed chief executive officer and auditor acknowledgements to be returned to the Authority.

South Africa

South African Reserve Bank

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