South African Institute for Drug Free Sport Act, 1997
R 385
Banks Act, 1990 (Act No. 94 of 1990)RegulationsRegulations relating to BanksChapter II : Financial, Risk-based and other related Returns and Instructions, Directives and Interpretations relating to the completion thereof38. Capital Adequacy, Leverage and TLACCapital Adequacy, Leverage and TLAC - Directives and interpretations for completion of monthly return concerning capital adequacy, leverage and TLAC (Form BA 700)Subregulation (9) Qualifying capital and reserve funds and related matters |
[Regulation 38(9) heading substituted by section 9(x) of Notice No. 943, GG46159, dated 31 March 2022 : effective 1 April 2022]
| (9) | Qualifying capital and reserve funds and related matters |
| (a) | Based on, among other things, the relevant requirements specified in section 70 of the Act read with the relevant requirements specified in subregulations (8)(a) to (8)(g) above, a bank shall in the calculation of— |
| (i) | the aggregate amount of common equity tier 1 capital and reserve funds and additional tier 1 capital and reserve funds and tier 2 capital and reserve funds that the bank is required to maintain, manage its business in such a manner that— |
| (A) | its common equity tier 1 capital adequacy ratio, that is, the ratio of qualifying common equity tier 1 capital and reserve funds to risk-weighted exposure, is at no time during the period period 1 January 2015 and thereafter, less than 6,5 per cent or such other percentage as may be directed in writing by the Authority; |
| (B) | its tier 1 capital adequacy ratio, that is, the ratio of qualifying common equity tier 1 capital and reserve funds and additional tier 1 capital and reserve funds to risk-weighted exposure, is at no time during the period 1 January 2015 and thereafter, less than 8 per cent; |
| (C) | its total capital adequacy ratio, that is, the ratio of qualifying common equity tier 1 capital and reserve funds and additional tier 1 capital and reserve funds and tier 2 capital and reserve funds to risk-weighted exposure, is at no time during the period 1 January 2014 and thereafter, less than 10 per cent; |
| (D) | after 1 January 2015 no amount obtained from the issue of any hybrid-debt instrument shall form part of the total amount of qualifying common equity tier 1 capital and reserve funds and additional tier 1 capital and reserve funds of the bank; |
| (b) | No amount relating to any profit or earnings of a bank or controlling company shall constitute qualifying common equity tier 1 reserve funds or additional tier 1 reserve funds of the said reporting bank or controlling company unless the board of directors of the relevant bank or controlling company formally appropriated the said amount by way of a board resolution to constitute retained earnings of the relevant bank or controlling company , that is, the board of directors of the relevant bank or controlling company shall formally consider the said amount and shall resolve that such profit or earnings constitutes retained earnings to be included in the capital base of the relevant bank or controlling company, which profit or earnings shall subsequently be available to absorb losses on a going concern basis that may arise from risks pertaining to the particular nature of such bank's or controlling company's business, and the said profit or earnings shall be disclosed as such in the published financial statements of the relevant bank or controlling company. |
[Regulation 38(9) substituted by section 9(x) of Notice No. 943, GG46159, dated 31 March 2022 : effective 1 April 2022]
