No data available for the deliverable: Strengthening liquidity support for banks through enhanced assessment and support mechanisms
Summary
The revised emergency liquidity assistance (ELA) framework introduces new internal guidance, improved assessment protocols and operational enhancements, with further legal alignment in progress.
View DetailsIs it working?
The system is effective, with readiness and coordination much improved. Legal alignment is expected to be finalised by 2027. The ELA framework is regularly tested and updated to ensure ongoing effectiveness.
Actions
The framework is operational and has improved the SARB’s crisis response capacity, though some legal formalisation is still pending.
Are there plans?
New guidance and operational improvements have been implemented, with regular reviews and coordination between the SARB, Prudential Authority and National Treasury.
Is it on the agenda?
The ELA framework is a standing SARB priority, with ongoing upgrades in response to IMF and FSAP recommendations.
Goals
To enhance the SARB’s ability to provide timely liquidity support to banks during periods of stress, safeguarding financial system stability.
Departments / Govt Institutions
National Treasury Prudential Authority South African Reserve Bank (SARB)
Summary
The revised emergency liquidity assistance (ELA) framework introduces new internal guidance, improved assessment protocols and operational enhancements, with further legal alignment in progress. SARB strengthened ELA operations, improved rapid liquidity support for distressed institutions and revised sector assessment and protocols. The ELA framework has been updated; sector stress tests are completed and policy communication is active.
Is it working?
The system is effective, with readiness and coordination much improved. Legal alignment is expected to be finalised by 2027. The ELA framework is regularly tested and updated to ensure ongoing effectiveness. Framework integrated into sector crisis management with further upgrades planned.
Actions
The framework is operational and has improved the SARB’s crisis response capacity, though some legal formalisation is still pending. However, ELA drills and SARB stress tests show resilience, and that the protocol is functioning.
Are there plans?
New guidance and operational improvements have been implemented, with regular reviews and coordination between the SARB, Prudential Authority and National Treasury. There are ongoing drills, training, reporting and system upgrades.
Is it on the agenda?
The ELA framework is a standing SARB priority, with ongoing upgrades in response to IMF and FSAP recommendations. SARB Prudential Authority and NT monitor this as part of crisis response protocols.
Goals
To enhance the SARB’s ability to provide timely liquidity support to banks during periods of stress, safeguarding financial system stability. The ultimate goal is to support banks in crises and ensure overall sector stability.
Departments / Govt Institutions
National Treasury Prudential Authority South African Reserve Bank (SARB)
Summary
The revised emergency liquidity assistance (ELA) framework introduces new internal guidance, improved assessment protocols and operational enhancements, with further legal alignment in progress. SARB strengthened ELA operations, improved rapid liquidity support for distressed institutions and revised sector assessment and protocols. The ELA framework has been updated; sector stress tests are completed and policy communication is active.
Is it working?
The system is effective, with readiness and coordination much improved. Legal alignment is expected to be finalised by 2027. The ELA framework is regularly tested and updated to ensure ongoing effectiveness. Framework integrated into sector crisis management with further upgrades planned.
Actions
The framework is operational and has improved the SARB’s crisis response capacity, though some legal formalisation is still pending. However, ELA drills and SARB stress tests show resilience, and that the protocol is functioning.
Are there plans?
New guidance and operational improvements have been implemented, with regular reviews and coordination between the SARB, Prudential Authority and National Treasury. There are ongoing drills, training, reporting and system upgrades.
Is it on the agenda?
The ELA framework is a standing SARB priority, with ongoing upgrades in response to IMF and FSAP recommendations. SARB Prudential Authority and NT monitor this as part of crisis response protocols.
Goals
To enhance the SARB’s ability to provide timely liquidity support to banks during periods of stress, safeguarding financial system stability. The ultimate goal is to support banks in crises and ensure overall sector stability.
Departments / Govt Institutions
National Treasury Prudential Authority South African Reserve Bank (SARB)
No data available for the deliverable: Strengthening liquidity support for banks through enhanced assessment and support mechanisms
No data available for the deliverable: Strengthening liquidity support for banks through enhanced assessment and support mechanisms
No data available for the deliverable: Strengthening liquidity support for banks through enhanced assessment and support mechanisms
No data available for the deliverable: Strengthening liquidity support for banks through enhanced assessment and support mechanisms