Postal Services Act, 1998
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 thereof24. Credit risk: quarterly returnDirective and interpretations for completion of the quarterly return concerning credit risk (Form BA 210)Subregulation (8) Matters related to exempt exposure |
[Regulation 24(8) heading substituted by section 3(c) of Notice No. 943, GG46159, dated 31 March 2022 : effective 1 April 2022]
| (8) | Matters related to exempt exposure |
| (a) | When a bank or controlling company calculates its credit concentration risk exposure arising from on-balance-sheet and off-balance-sheet credit exposures included in either its banking book or trading book— |
| (i) | any exposure to a sovereign, as defined in regulations 23(6), 23(8), 23(11) or 23(13) of these Regulations; |
| (ii) | any portion of an exposure guaranteed or secured by a financial instrument issued by a sovereign envisaged in subparagraph (i) above, to the extent that the relevant eligibility criteria specified in these Regulations for credit risk mitigation are met; |
| (iii) | any exposure to the central bank of a sovereign envisaged in subparagraph (i) above; |
| (iv) | subject to such conditions as may be specified in writing by the Authority, any exposure to a qualifying central counterparty related to clearing activities; |
| (v) | and in order to avoid disturbing the payment and settlement system or any processes related thereto, any intraday interbank exposure; and |
| (vi) | any other exposure specified in writing by the Authority, |
shall be exempted from any provision of subregulation (6) that specifies a limit or capital requirement in relation to the aggregate amount of the bank or controlling company's credit exposure to that person, provided that when a bank or controlling company has an exposure to a person or an entity that is exempted from a provision of subregulation (6), but which is hedged by a credit derivative instrument issued by a person or an entity that is not exempted from that provision of subregulation (6), the bank or controlling company shall include that exposure to that counterparty providing the credit protection in accordance with the relevant requirements specified in subregulation (6), notwithstanding the fact that the original exposure may be an exposure exempted from a requirement specified in subregulation (6).
| (b) | When two or more non-sovereign entities, that is, entities that fall outside the scope of a sovereign envisaged in paragraph (a)(i) above, are controlled by or economically dependent upon the sovereign envisaged in paragraph (a)(i) above, and those entities are not otherwise connected, the bank or controlling company may deem those entities not to constitute a group of connected counterparties that has to be regarded as a single counterparty for the purposes of subregulation (6). |
| (c) | A bank or controlling company shall report any exposure exempted from a requirement specified in subregulation (6), including any relevant sovereign exposure, that otherwise meets the criteria and definition of a credit concentration risk exposure envisaged in subregulation (6), in accordance with the relevant requirements specified on the form BA 210 read with the relevant directives specified in any relevant subregulation of regulation 24, provided that intraday interbank exposures shall also be exempted from any relevant reporting requirement specified on the form BA 210 read with the relevant directives specified in any relevant subregulation of regulation 24. |
[Regulation 24(8) substituted by section 3(c) of Notice No. 943, GG46159, dated 31 March 2022 : effective 1 April 2022]
