Tag archives: SARB

Financial Sector Laws Amendment Bill 2020 to go to Parliament

By Desiree Reddy (ZA) on June 17, 2020 Posted in Banking

During a virtual meeting held on 10 June 2020, Cabinet approved the Financial Sector Laws Amendment Bill of 2020, for submission to Parliament. In the first step to formalising a resolution process for financially distressed banks, the Bill proposes to designate the SARB as the Resolution Authority, and enhances the SARB’s regulatory tools for discharging … Continue reading

COVID-19 guaranteed loan scheme for businesses with an annual turnover of less than R300 million

By Tshegofatso Rammutla and Jackie Midlane on May 15, 2020 Posted in Banking

In a further initiative to combat the economic fallout of the COVID-19 pandemic, the state, in collaboration with the banking sector and the South African Reserve Bank (SARB) has announced a R100 billion loan scheme to assist ailing small and medium-sized businesses (SMMEs). On 12 May 2020 National Treasury, the SARB and the Banking Association … Continue reading

SARB’s responses to COVID-19 and its recommendation to South African banks on the payment of dividends and executive bonuses in 2020

By Alastair Dixon and Olivia Radford on April 21, 2020 Posted in General

The SARB’s Prudential Authority (PA) issued a guidance note advising that it did not expect banks to distribute dividends on ordinary shares or pay cash bonuses to senior executives in 2020. This guidance is not binding on banks but is recommended. In terms of section 46(2) of the Companies Act 2008 resolutions authorising a distribution … Continue reading

SARB intends to regulate crypto assets

By Lize Louw, Steve Chemaly and Desiree Reddy (ZA) on January 22, 2019 Posted in Banking

In mid-January 2019, the SARB published its Consultation Paper on Policy Proposals for Crypto Assets, amid a growing interest, investment and participation in crypto assets by financial institutions and individuals and an estimated market capitalisation of about US$200 billion for crypto assets globally. Crypto assets are digital representations or tokens that are accessed, verified, transacted … Continue reading

SARB announces establishment of Fintech programme

By Kerri Gevers (SG) on February 20, 2018 Posted in Banking

The South African Reserve Bank (SARB) has established a Financial Technology (Fintech) programme to assess the emergence of technological innovations in the financial sector and consider their regulatory implications. In a statement issued on 13 February 2018, the SARB stated that it ‘takes a balanced approach to technological innovations, considering the potential benefits and risks … Continue reading

Twin Peaks signed into law

By Desiree Reddy (ZA) and Sascha Graham on August 23, 2017 Posted in General

The Financial Sector Regulation Bill was signed into law by President Zuma on 21 August 2017. The commencement dates for the new Financial Sector Regulation Act (FSR Act) are not yet known. The act provides the architecture for the new ‘twin peaks’ method of regulation to be adopted across the South African financial services industry, … Continue reading