Regulatory Alerts2013-06-27
D10/2013: Limits on effective net open foreign-currency positions and unencumbered assets for foreign branches
The South African Reserve Bank issued Directive D10/2013 to clarify regulatory limits on the effective net open foreign-currency positions for banks, controlling companies, and branches of foreign institutions. The directive mandates that these entities must not exceed a limit equal to 10 percent of their qualifying capital and reserve funds, unless a lower percentage is specified in writing by the Registrar. Additionally, branches of foreign institutions are required to maintain unencumbered assets amounting to at least 60 percent of their total liabilities in the Republic.
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