SARB proposes new directive for bank returns, replaces 2025 rules
The South African Reserve Bank's Prudential Authority has issued a proposed directive to replace Directive 5 of 2025, outlining new requirements for banks to submit financial and risk-based returns. Banks and interested parties are invited to submit comments by May 20, 2026.
Updating reporting for Basel III
The proposed directive from the South African Reserve Bank's (SARB) Prudential Authority (PA) aims to update the regulatory reporting framework for banks, replacing Directive 5 of 2025.
This new directive, effective from July 1, 2026, mandates banks, controlling companies, and branches of foreign institutions to complete and submit a range of specified financial, risk-based, and other related returns to the PA.
This move follows a series of regulatory adjustments initiated on January 31, 2025, when the Minister of Finance amended the Regulations relating to Banks, effectively deleting all previous Banks Act (BA) returns and their instructions.
Subsequently, the PA issued Directive 1 of 2025, which was then replaced by Directive 5 of 2025 on July 1, 2025.
The latter directive was partly driven by the implementation of the remaining components of the Basel III post-crisis reforms in South Africa and the Umoja System Implementation Project, a digital interface designed to streamline interactions between the PA and regulated institutions.
The current proposal consolidates these requirements, ensuring a continuous and updated reporting mechanism aligned with international standards and domestic operational improvements.
A comprehensive reporting overhaul
The proposed directive details a comprehensive set of returns that banks must submit, covering various aspects of their operations.
These include financial, risk-based, and other regulatory data, all to be submitted in accordance with Annexure 1A of the directive and relevant sections of the Regulations.
A critical procedural requirement is that every set of returns must be accompanied by a duly completed, signed, and certified form BA 099 for domestic banks or controlling companies, or form BA 099A for relevant foreign operations.
These forms, attached as Annexures 1B and 1C respectively, ensure the authenticity and accuracy of the submitted data.
Furthermore, the directive outlines specific instructions for completing a wide array of other forms, from BA 100 to BA 940, each linked to its respective annexure for detailed guidance.
This structured approach aims to standardize and enhance the quality of data collected by the Prudential Authority, facilitating more integrated, efficient, and transparent supervision as part of the broader Umoja System Implementation Project.
Routine update, crucial for data
This proposed directive represents a largely technical, yet critical, update to South Africa's banking regulatory framework.
While primarily a procedural replacement, it underscores the ongoing commitment to align domestic reporting with international standards like Basel III and enhance supervisory data quality.
For banks, this means continuous adaptation to evolving data submission requirements, reinforcing the need for robust internal reporting systems.