Include AI governance principles in the Joint Standard on Culture and Governance with a financial sector focus.
The reform establishes high-level governance, ethical and risk management principles for AI, with a draft national policy framework and sector-specific standards in development. The Department of Communications & Digital Technologies (DCDT) released a draft National AI Policy Framework in August 2024.
read more >>SARB empowered to manage systematically important financial institutions (SIFIs) failures.
The Corporation for Deposit Insurance (CODI) is operational, with premium collection commencing from April 2024 and resolution protocols in place, aligning South Africa with global best practices.
read more >>Mandatory task force on climate-rated financial disclosures (TCFD) reporting
South Africa’s climate-resilient investment framework provides policy guidance, incentives for green finance and a taxonomy for sustainable investment, with pilots under way and integration into fiscal planning. Banks are required to comply by 2026 and insurers by 2027. A pilot programme with 12 institutions was completed in November 2024.
read more >>Modernise forex system for trade and investment to align with OECD code of liberalisation
Modernising South Africa’s foreign exchange controls involves phased liberalisation of forex regulations, regulatory updates and alignment with the OECD code and AfCFTA requirements.
read more >>New standards for exchanges and market infrastructures with the draft expanded in 2024.
The reform introduces new standards for exchanges, clearinghouses and market infrastructures, with a focus on interoperability and risk management. Finalisation is expected in 2025.
read more >>Real-time, low-cost payment platform (SARB project Khokha) with the potential to boost financial inclusion.
The reform involves amendments to the NPS Act, expanding non-bank access, supporting digital payments and enhancing security and competition. For the reform to succeed requires partnerships with telecommunication companies. Technical specs were published in December 2024. Eight banks are currently participating in a digital pilot programme.
read more >>Improving credit information and reporting through national credit bureau and data-sharing reforms.
The reform includes developing a public credit registry, new data-sharing protocols and a business credit reporting ecosystem for MSMEs. It may require regulatory changes over the short term and legislative changes over the long term to accommodate credit data for micro, small and medium enterprises (MSMEs).
read more >>Implementation of Basel III reforms to enhance risk sensitivity, granularity and consistency in credit risk calculations
The reform introduces revised risk weights, output floors and phased implementation for banks, with full compliance required by July 2025.
read more >>Replace all previous operational risk capital approaches (advanced measurement approach and three standardised approaches) with a single, risk-sensitive standardised approach for all banks
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.
read more >>Implementation of the Basel III revised leverage ratio, including an updated exposure definition to better capture both on- and off-balance sheet risks.
The reform updates the exposure definition and introduces a leverage ratio buffer for D-SIBs (domestic systemically important banks), aligns with BCBS refinements (eg, derivatives, SFTs) and enhances disclosure requirements. In addition, it adjusts the calculation of leverage ratio for banks. This is progressing with implementation under way (deadline mid-2025).
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