Banks to comply with new IRRBB requirements from July 1
The South African Reserve Bank's Prudential Authority has issued a Directive for banks to comply with revised requirements for interest rate risk in the banking book (IRRBB). These new rules, incorporating Basel Committee adjustments, take effect from July 1, 2026.
Basel adjustments drive local rule change
The South African Reserve Bank's Prudential Authority (PA) has issued Directive 3 of 2026, implementing revised requirements for interest rate risk in the banking book (IRRBB).
This follows adjustments to interest rate shocks published by the Basel Committee on Banking Supervision (BCBS) on July 16, 2024.
As a BCBS member, South Africa is committed to consistent implementation of these international standards.
The PA previously informed interested parties on October 31, 2025, of its decision to convert detailed IRRBB requirements from Regulation 30 into Prudential Standards.
This process includes deleting Regulation 30 and incorporating the recalibrated BCBS shocks into the new Directive, which takes effect from July 1, 2026.
Consultation confirms new framework
The PA conducted a consultation process, inviting comments on a proposed Directive by December 15, 2025.
This proposal detailed the deletion of Regulation 30 and the integration of the updated BCBS standard.
General support from interested parties led to a revised proposed Directive issued on April 1, 2026, with a final comment period until April 30, 2026.
With no further amendments required, the Directive has been finalised.
Banks, controlling companies, and branches of foreign institutions must comply with these revised IRRBB requirements, including the recalibrated shocks, from July 1, 2026.