SARB confirms status of banking circulars and directives

The Prudential Authority (PA) issues Circular 1 each year to clarify which previously issued circulars remain effective.

All Banks Act circulars are deemed withdrawn or replaced unless explicitly confirmed in this annual publication, retaining their original numbers and dates.

In contrast, directives issued under section 6(6) of the Banks Act, 1990, remain effective indefinitely until formally withdrawn in writing by the PA.

This distinction is crucial for all regulated entities and their auditors to maintain compliance with the dynamic regulatory framework.

The current circular lists 18 Banks Act circulars and 69 directives covering a wide array of topics from capital requirements and liquidity management to risk data aggregation and corporate governance, ensuring a clear and up-to-date regulatory landscape for the South African financial sector.

This annual confirmation process is a cornerstone of the PA's prudential oversight, providing essential certainty in a complex regulatory environment.

By clearly delineating which documents are active, the PA minimizes ambiguity and supports effective compliance efforts across the banking sector.

The extensive list of confirmed circulars and directives underscores the PA's continuous efforts to align South African banking regulations with international standards, such as Basel III, and to address evolving risks like cyber incidents and climate-related financial exposures.

The requirement for chief executive officers and auditors to acknowledge receipt further emphasizes the importance of this communication for maintaining robust governance and risk management practices within financial institutions.