Four legacy banking directives slated for withdrawal
The Prudential Authority has proposed the withdrawal of four legacy banking directives following recent regulatory updates and supervisory developments. Interested parties have until August 28, 2026, to submit comments.
Superseded by new rulebooks
The Prudential Authority has issued a proposed directive to withdraw four legacy directives—namely Directive 2/2011, Directive 10/2015, Directive 7/2020, and Directive 6/2021—under section 6(6)(c) of the Banks Act of 1990.
These measures have become redundant following comprehensive legislative and supervisory updates, including the implementation of the New Standardised Approach for operational risk and revised market risk frameworks effective July 1, 2025.
Provisions from Directive 7/2020 have already been formally incorporated into regulation 38 of the amended Regulations relating to Banks, rendering the standalone notice unnecessary.
Phasing out obsolete requirements
The proposed withdrawals affect specific reporting and calculation standards, such as daily value-at-risk reporting under form BA 325 and obsolete operational risk measurement methods like the Advanced Measurement Approach.
Directive 6/2021 on credit risk models for specialized lending is similarly being addressed alongside Directive 12/2025, which governs parameter floors and ongoing monitoring through December 2025.
Interested stakeholders and bank auditors have until August 28, 2026, to submit formal comments to the Prudential Authority.
Housekeeping that reduces red tape
Streamlining obsolete regulatory instruments is a welcome administrative cleanup for South African lenders.
It eliminates redundant reporting burdens that no longer align with the modernized Basel frameworks.
For compliance officers, this targeted pruning clarifies the rulebook without introducing new substantive hurdles.