Economic

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.

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).

New reporting requirements and supervision.

The reform introduces new prudential standards, CODI contributions and updated reporting, with ongoing review of the Mutual Banks Act. This enhances monitoring and guidance for mutual banks.

Strengthening liquidity support for banks through enhanced assessment and support mechanisms

The revised emergency liquidity assistance (ELA) framework introduces new internal guidance, improved assessment protocols and operational enhancements, with further legal alignment in progress.

Move to new benchmark rate for money markets by phasing out JIBAR benchmark rate.

The reform involves a phased transition plan, industry consultation, with International Swaps and Derivatives Association (ISDA) fallback protocols and new conventions for cash market instruments, with JIBAR set to cease by December 2026.

Corporation for Deposit Insurance (CODI)

CODI is one of a number of Twin Peaks regulatory reforms introduced after the 2008–09 global financial crisis. It is part of the wider financial sector safety net that includes the Prudential Authority (PA), which supervises financial institutions; the Financial Sector Conduct Authority (FSCA) that ensures that financial institutions treat their customers fairly and transparently;…

Capital flows management framework review; fostering business growth and promoting investment in the region.

Unlisted companies and licensed private equity funds are currently allowed to invest offshore up to the limit of R5bn, in line with foreign direct investment. More than R5bn requires SARB approval. Overarching reforms to South Africa’s foreign exchange system include fostering growth of high-potential and innovative businesses, promoting trade and reducing trade-related red tape. Authorised…

Consolidation of four ombuds offices into a single redress system.

Restructuring the Gold and Foreign Exchange Contingency Reserve Account to manage forex reserves and reduce government borrowing.

The reform introduced a new settlement framework for the Gold and Foreign Exchange Contingency Reserve Account (GFECRA), allocating R250bn between the SARB and National Treasury to stabilise public finances and improve transparency. COMPLETE: We stopped tracking this reform at end-June 2025 as The GFECRA settlement framework reform has been fully completed as planned with the…

Enact COFI Bill to harmonise market regulation

The COFI Bill replaces a patchwork of legacy laws with a single, comprehensive framework for market conduct, aligning South Africa with global “Twin Peaks” standards and enhancing regulatory clarity.