No data available for the deliverable: Implementation of Basel III reforms to enhance risk sensitivity, granularity and consistency in credit risk calculations
No data available for the deliverable: Implementation of Basel III reforms to enhance risk sensitivity, granularity and consistency in credit risk calculations
No data available for the deliverable: Implementation of Basel III reforms to enhance risk sensitivity, granularity and consistency in credit risk calculations
No data available for the deliverable: Implementation of Basel III reforms to enhance risk sensitivity, granularity and consistency in credit risk calculations
No data available for the deliverable: Implementation of Basel III reforms to enhance risk sensitivity, granularity and consistency in credit risk calculations
Summary
The reform introduces revised risk weights, output floors and phased implementation for banks, with full compliance required by July 2025.
View DetailsIs it working?
The reform is almost complete, with all major steps taken and final compliance due in July 2025. Output floors will be phased in until 2028 to ensure a smooth transition.
Actions
Banks are on track to achieve compliance, with manageable capital impacts and strong regulatory oversight.
Are there plans?
Regulatory amendments have been published, QIS conducted and industry training provided.
Is it on the agenda?
The SARB and PA have made this a central pillar of Basel III reforms, with detailed regulatory guidance.
Goals
To improve the risk sensitivity and consistency of credit risk capital requirements, aligning with Basel III international standards.
References
Departments / Govt Institutions
Summary
The reform introduces revised risk weights, output floors and phased implementation for banks, with full compliance required by July 2025.
View DetailsIs it working?
The reform is almost complete, with all major steps taken and final compliance due in July 2025. Output floors will be phased in until 2028 to ensure a smooth transition.
Actions
Banks are on track to achieve compliance, with manageable capital impacts and strong regulatory oversight.
Are there plans?
Regulatory amendments have been published, QIS conducted and industry training provided.
Is it on the agenda?
The SARB and PA have made this a central pillar of Basel III reforms, with detailed regulatory guidance.
Goals
To improve the risk sensitivity and consistency of credit risk capital requirements, aligning with Basel III international standards.
References
Departments / Govt Institutions
Summary
The reform introduces revised risk weights, output floors and phased implementation for banks, with full compliance required by July 2025.
View DetailsIs it working?
The reform is almost complete, with all major steps taken and final compliance due in July 2025. Output floors will be phased in until 2028 to ensure a smooth transition.
Actions
Banks are on track to achieve compliance, with manageable capital impacts and strong regulatory oversight.
Are there plans?
Regulatory amendments have been published, QIS conducted and industry training provided.
Is it on the agenda?
The SARB and PA have made this a central pillar of Basel III reforms, with detailed regulatory guidance.
Goals
To improve the risk sensitivity and consistency of credit risk capital requirements, aligning with Basel III international standards.
References
Departments / Govt Institutions
Summary
Basel III is a set of international standards for bank regulation developed in response to the 2008 global financial crisis, setting minimum capital requirements so banks can absorb losses without failing. The "revised standardised approach for credit risk" is a specific component that improves how banks calculate how much capital to hold against loans and other credit exposures. The Prudential Authority (the SARB division that supervises banks for financial soundness) implemented these revisions in 2025. The Basel III post-crisis credit risk reforms are live for all South African banks. A sector-wide audit in Q3-25 confirmed compliance and an impact analysis was published by SARB and the PA. Capital buffers at SA banks have improved as a result.
View DetailsIs it working?
SARB audit confirms risk sensitivity and capital adequacy are improving. South African banks are now aligned with international post-crisis standards, giving investors and depositors greater confidence in sector resilience.
Actions
All major banks are compliant with the revised approach and capital buffers have improved. The SARB/PA audit published in Q3-25 confirmed risk sensitivity and capital adequacy.
Are there plans?
Regulators continue with plans of impact studies across bank types, refinement of loss‑data and business‑indicator reporting, phased transition dates and alignment of the operational‑risk standard with broader Basel output‑floor and leverage‑ratio reforms, with further guidance expected through 2026. There are ongoing sector stress tests, capital requirement recalibration and regulatory audits which are planned for.
Is it on the agenda?
Yes. SARB/PA priority in Cabinet and Parliament reviews, featured in the SARB's annual Financial Stability Report. Basel III finalisation, including the operational‑risk package, is flagged in SARB/PA prudential‑policy roadmaps and referenced in Budget Review 2026 as part of efforts to maintain global regulatory alignment and safeguard financial stability.
Goals
To update the rules governing how South African banks calculate the minimum capital they must hold against the risk of borrowers defaulting. This will align with the international Basel III banking framework's post-crisis revisions, which improve the accuracy and risk-sensitivity of capital calculations.
References
Departments / Govt Institutions
Summary
Basel III is a set of international standards for bank regulation developed in response to the 2008 global financial crisis, setting minimum capital requirements so banks can absorb losses without failing. The "revised standardised approach for credit risk" is a specific component that improves how banks calculate how much capital to hold against loans and other credit exposures. The Prudential Authority (the SARB division that supervises banks for financial soundness) implemented these revisions in 2025. The Basel III post-crisis credit risk reforms are live for all South African banks. A sector-wide audit in Q3-25 confirmed compliance and an impact analysis was published by SARB and the PA. Capital buffers at SA banks have improved as a result.
View DetailsIs it working?
SARB audit confirms risk sensitivity and capital adequacy are improving. South African banks are now aligned with international post-crisis standards, giving investors and depositors greater confidence in sector resilience.
Actions
All major banks are compliant with the revised approach and capital buffers have improved. The SARB/PA audit published in Q3-25 confirmed risk sensitivity and capital adequacy.
Are there plans?
Regulators continue with plans of impact studies across bank types, refinement of loss‑data and business‑indicator reporting, phased transition dates and alignment of the operational‑risk standard with broader Basel output‑floor and leverage‑ratio reforms, with further guidance expected through 2026. There are ongoing sector stress tests, capital requirement recalibration and regulatory audits which are planned for.
Is it on the agenda?
Yes. SARB/PA priority in Cabinet and Parliament reviews, featured in the SARB's annual Financial Stability Report. Basel III finalisation, including the operational‑risk package, is flagged in SARB/PA prudential‑policy roadmaps and referenced in Budget Review 2026 as part of efforts to maintain global regulatory alignment and safeguard financial stability.
Goals
To update the rules governing how South African banks calculate the minimum capital they must hold against the risk of borrowers defaulting. This will align with the international Basel III banking framework's post-crisis revisions, which improve the accuracy and risk-sensitivity of capital calculations.
References
Departments / Govt Institutions