No data available for the deliverable: Replace all previous operational risk capital approaches (advanced measurement approach and three standardised approaches) with a single, risk-sensitive standardised approach for all banks.
No data available for the deliverable: Replace all previous operational risk capital approaches (advanced measurement approach and three standardised approaches) with a single, risk-sensitive standardised approach for all banks.
Summary
The new framework bases capital on business indicators and historical loss data, with compliance effectively required by July 2025. The new approach is expected to improve risk management and sector resilience. SARB/PA replaced all previous operational risk approaches with a single, risk-sensitive standard across all banks. Three legacy approaches were replaced by a single standardised approach. SARB guidance has been issued and a sector peer review is complete.
Is it working?
The reform is nearly complete; only final compliance and reporting steps remain. Peer benchmark confirms framework efficacy.
Actions
The framework is in place and banks are preparing for the transition, with most having met the July 2025 deadline. Since then, sector adoption is complete and capital adequacy rising along with peer review outcomes have been positive.
Are there plans?
Regulatory amendments and guidance have been issued, with a qualified impact study and industry engagement ongoing. There is ongoing regulatory monitoring together with capacity-building workshops for banks.
Is it on the agenda?
The SARB and Prudential Authority have prioritised this as part of Basel III, with clear implementation timelines. The reform is included in SARB Prudential Authority annual priorities and Parliament risk monitoring.
Goals
To enhance the accuracy and comparability of operational risk capital requirements, replacing legacy approaches with a standardised, risk-sensitive model. The main objective is to streamline operational risk capital requirements for banks.
Departments / Govt Institutions
Financial Sector Conduct Authority (FSCA) National Treasury South African Reserve Bank (SARB)
Summary
The new framework bases capital on business indicators and historical loss data, with compliance effectively required by July 2025. The new approach is expected to improve risk management and sector resilience. SARB/PA replaced all previous operational risk approaches with a single, risk-sensitive standard across all banks. Three legacy approaches were replaced by a single standardised approach. SARB guidance has been issued and a sector peer review is complete.
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Is it working?
The reform is nearly complete; only final compliance and reporting steps remain. Peer benchmark confirms framework efficacy.
Actions
The framework is in place and banks are preparing for the transition, with most having met the July 2025 deadline. Since then, sector adoption is complete and capital adequacy rising along with peer review outcomes have been positive.
Are there plans?
Regulatory amendments and guidance have been issued, with a qualified impact study and industry engagement ongoing. There is ongoing regulatory monitoring together with capacity-building workshops for banks.
rn
Is it on the agenda?
The SARB and Prudential Authority have prioritised this as part of Basel III, with clear implementation timelines. The reform is included in SARB Prudential Authority annual priorities and Parliament risk monitoring.
Goals
To enhance the accuracy and comparability of operational risk capital requirements, replacing legacy approaches with a standardised, risk-sensitive model. The main objective is to streamline operational risk capital requirements for banks.
Departments / Govt Institutions
Financial Sector Conduct Authority (FSCA) National Treasury South African Reserve Bank (SARB)
No data available for the deliverable: Replace all previous operational risk capital approaches (advanced measurement approach and three standardised approaches) with a single, risk-sensitive standardised approach for all banks.
No data available for the deliverable: Replace all previous operational risk capital approaches (advanced measurement approach and three standardised approaches) with a single, risk-sensitive standardised approach for all banks.
No data available for the deliverable: Replace all previous operational risk capital approaches (advanced measurement approach and three standardised approaches) with a single, risk-sensitive standardised approach for all banks.
No data available for the deliverable: Replace all previous operational risk capital approaches (advanced measurement approach and three standardised approaches) with a single, risk-sensitive standardised approach for all banks.