The Implementation Of Basel IIi

894 WordsMay 30, 20164 Pages
1 On 20 May this year the Amendment to the Banks Act regulations ("Regulations") in terms of section 90 of the Banks Act, 1990 ("Banks Act") were published in the government gazette and will come into effect on 1 July 2016. A number of cosmetic changes have been made to the Regulations but a few material changes will be highlighted in this alert. 2 Subsequent to the implementation of Basel III in South Africa on 1 January 2013, the Basel Committee on Banking Supervision ("BCBS") issued revised requirements in respect of a wide range of matters which necessitated amendments to our regulations. The Regulations now cater for the changes to capital disclosure requirements, changes to the Liquidity Coverage Ratio ("LCR"), requirements related to intraday liquidity management and public disclosure requirements related to the LCR. 3 Regulation 38(16) was amended to incorporate South African Reserve Bank ("SARB") Directive 05/2014 which dealt with obtaining the Registrar of Banks consent before reducing qualifying capital and reserve funds. Regulation 38(5)(a)(i)(K) which deals with deductions which need to be made from a bank 's common equity tier 1 capital and reserve funds has been amended to include "investment in a foreign branch" in order to clarify the treatment of capital invested in foreign branches. 4 Regulation 38(17) dealing with the calculation of a banks LCR has been substituted by a new Regulation 38(15) which incorporates the latest Basel III framework as well as
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