The South African Reserve Bank (SARB) has invited the public to comment on the discussion paper on the proposed methodology to determine systemically important banks in the country.
The discussion paper, titled ‘A methodology to determine which banks are systemically important within the South African context’, was published by the SARB on Friday.
“The discussion paper is aimed at soliciting comments on the methodology proposed for determining systemically important banks in South Africa,” the central bank said in a statement.
The primary objective of the SARB is to protect the value of the currency in the interest of balanced and sustainable economic growth in South Africa.
The SARB’s mandate and function of protecting and enhancing financial stability in the country is affirmed in the Financial Sector Regulation Act 9 of 2017 (FSR Act). In support of the SARB’s financial stability mandate, section 29 of the FSR Act provides the Governor of the SARB with the powers to designate an institution as a systemically important financial institution (SIFI), and affords the SARB additional powers with regard to SIFIs to assist it in fulfilling its mandate.
The discussion paper, the central bank said, focuses on the proposed methodology to determine which banks are SIFIs within the South African context.
“The methodology takes into account international guidance and best practice as well as the unique characteristics of the South African financial system,” the SARB said.
Comments on the paper are invited to ensure that the methodology will accurately reflect the systemic importance of banks and serve as a sound basis for the Governor to designate those banks as SIFIs.
A summary of the comments received may be published, unless respondents explicitly request otherwise.
Contact details and deadline for comments
Comments on this discussion paper should be addressed to:
Head: Financial Stability Department South African Reserve Bank
P O Box 427
Tel: +27 12 313 3601. Email: FST-RPD@resbank.co.za
The public is urged to state their affiliation or if they are responding in a private capacity.
The closing date for comments is Friday, 29 March 2019. – SAnews.gov.za