Regulatory Alerts2013-08-02
South African Reserve Bank Committed Liquidity Facility Guidance Note 6/2013
The South African Reserve Bank establishes a committed liquidity facility to help banks meet their Liquidity Coverage Ratio requirements by substituting level two assets with up to forty percent of high-quality liquid assets. The facility accepts listed debt, equities, self-securitised residential mortgages, and other loans as collateral, subject to credit ratings, ring-fencing rules, and annual audits. Banks must obtain board approval, pay usage-based commitment fees, and adhere to strict application deadlines to access drawdown liquidity at the repo rate plus one hundred basis points.
Share