Financial sector reforms
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Reform Area: Financial sector reforms2025 - 2026

AI governance principles for financial institutions
Bank resolution and deposit insurance
Boosting long-term investment
Cash Market Fallback Methodology Reform
Climate-resilient investment framework
Conduct of Financial Institutions Bill (COFI)
Credit information system enhancement
Digital infrastructure and financial regulation
Economics and statistics returns modernisation
Enhanced cybersecurity standards for financial institutions
Financial inclusion and deposit insurance
Financial innovation to improve competitiveness and inclusion
Fintech and digital finance regulation
Foreign exchange system modernisation
Funeral insurance regulations review
GFECRA Settlement Framework Reform
Green finance taxonomy development
Leverage ratio – revised exposure definition
Market abuse regulation expansion
Market infrastructure conduct standard
Mutual banks regulatory updates
National Financial Ombud Scheme (NFO) launch
National Payments System (NPS) Act Amendments
Over-the-counter (OTC) derivatives regulation; margin requirements reporting via Umoja platform
Pension funds governance and oversight
Prudential regulation strengthening
Retirement reform
Revised operational risk framework (Basel III)
Revised standardised approach for credit risk (Basel III)
SARB emergency liquidity assistance (ELA) framework
Transition from JIBAR to ZARONIA

Deliverables

Include AI governance principles in the Joint Standard on Culture and Governance with a financial sector focus.SARB empowered to manage systematically important financial institutions (SIFIs) failures.Capital flows management framework review; fostering business growth, promoting investment in the region, promoting tradeCapital flows management framework review; fostering business growth, promoting investment in the region, promoting trade; fostering business growth, promoting investment in the region, promoting tradeTransitioning cash market products (loans, bonds, money market instruments) from JIBAR to ZARONIA by defining a fallback methodology: compounded ZARONIA + credit adjustment spread (CAS).Mandatory task force on climate-rated financial disclosures (TCFD)-aligned reporting.Enact COFI Bill to harmonise market regulationImproving credit information and reporting through national credit bureau and data-sharing reforms.Comprehensive upgrade and rollout of South Africa’s digital identity verification system. Verification for both public and private sector services, including banks, insurers and telcos.National Treasury and Stats SA are implementing new data collection protocols, digital platforms and legislative reforms to modernise the national statistics systemNew requirements for cybersecurity resilience, eg, all financial institutions to adopt robust cybersecurity, risk management and incident response frameworks.Corporation for Deposit Insurance (CODI) - Provision for protection in event of bank failure in March 2023, Provisions for collecting premiums effective from 1 April 204Deepening financial inclusion for individuals - NT to implement strategy in 2024Improved access for SMEs, diversification, innovation, competitivenessCrypto asset policy.Supporting SMEs through payments innovationTokenisation (aka Blockchain).Regulation of fintech, crypto assets and digital payment providers.Modernise forex system for trade and investment to align with OECD code of liberalisation.Comprehensive review and overhaul of the regulatory framework for the distribution of funeral insurance.Restructuring the Gold and Foreign Exchange Contingency Reserve Account to manage forex reserves and reduce government borrowing.Develop a national green finance classification system.Implementation of the Basel III revised leverage ratio, including an updated exposure definition to better capture both on- and off-balance sheet risks.Extension of market abuse rules to new asset classes as part of market integrity reforms.New standards for exchanges and market infrastructures with the draft expanded in 2024.New reporting requirements and supervision.Consolidation of four ombuds offices into a single redress system.Real-time low-cost payment platform (SARB project Khokha) with the potential to boost financial inclusion.Implementation of regulatory reporting requirements for margin on non-centrally cleared OTC derivatives, using the Umoja platform to submit returnsStrengthening governance and investment oversight in pension funds through new standards and proactive supervision.Risk-based supervision and capital adequacy reforms through enhanced monitoring, stress testing and reporting.Two-pot system/early access to retirement fundsUnclaimed assets - Recommendations published by FSCA published in 2022 - stakeholder feedback/response expected in 2024Unclaimed assets.Replacement of all previous operational risk capital approaches (advanced measurement approach and three standardised approaches) with a single, risk-sensitive standardised approach for all banks.Implementation of Basel III reforms to enhance risk sensitivity, granularity and consistency in credit risk calculations.Strengthening liquidity support for banks through enhanced assessment and support mechanismsMove to new benchmark rate for money markets by phasing out JIBAR benchmark rate.