SARB Prudential Authority

Proposed Directive - Revised requirements related to Interest Rates Risk in the Banking Book

The South African Reserve Bank Prudential Authority has issued a proposed directive for consultation on revised requirements related to Interest Rates Risk in the Banking Book (IRRBB). The directive incorporates recalibrated interest rate shocks that banks must apply to their banking book exposures for risk measurement purposes. This consultation follows international Basel Committee standards updates on IRRBB supervision.

Proposed Directive on Securitisation Vehicle Risk Disclosures

The South African Reserve Bank Prudential Authority issued Proposed Directive BA501 requiring issuer Special Purpose Institutions (SPIs) to disclose enhanced securitisation risk information. The directive replaces Directive 4 of 2017 and mandates that auditors include verification of Annexure A requirements in annual audits. Comments are being solicited on this proposed directive.

Valuator Requirements for Resolution Under FSR Act

The South African Reserve Bank Prudential Authority issued Prudential Communication 4 of 2026 establishing requirements for valuators appointed for resolution purposes under the Financial Sector Regulation Act, 2017. The communication sets out standards for independence, competence, governance, methodologies, information access, and reporting. Affected parties include valuators seeking appointment by the resolution authority and financial institutions subject to resolution proceedings.

2026 Flavour-of-the-year topic for banks

The South African Reserve Bank Prudential Authority issued Prudential Communication 5 of 2026, announcing the 2026 Flavour-of-the-year supervisory focus topic for banks. This annual communication informs banks of the specific prudential area that will receive heightened supervisory attention during the year. The communication is intended to guide banks on regulatory expectations and examination priorities.

Co-operative Banks 2026 Flavour-of-the-Year Topic

The South African Reserve Bank Prudential Authority issued Prudential Communication 6 of 2026, announcing the 2026 Flavour-of-the-Year supervisory topic for co-operative banks. This annual programme identifies specific focus areas for enhanced prudential supervision of co-operative banks during 2026. The communication provides guidance on the selected topic to assist co-operative banks in understanding supervisory expectations.

Flavour of the Year Topic for Mutual Banks

The South African Reserve Bank Prudential Authority issued Prudential Communication 7 of 2026 on 24 March 2026, establishing the 2026 Flavour-of-the-year topic for mutual banks. This annual communication sets the supervisory focus area that the Prudential Authority will prioritize when supervising mutual banks. Mutual banks should align their risk management and compliance activities accordingly.

Flavour-of-the-year topic for life insurers

The South African Reserve Bank Prudential Authority issued Prudential Communication 8 of 2026, establishing the 2026 flavour-of-the-year supervisory focus for life insurers operating in South Africa. The communication provides information on the specific prudential topic that will receive priority attention during supervisory activities for the year.

JIBAR to ZARONIA Transition Supervisory Expectations

The South African Reserve Bank Prudential Authority issued Joint Communication 1 of 2026 establishing supervisory expectations for the orderly transition from JIBAR (Johannesburg Interbank Average Rate) to ZARONIA (South African Rand Overnight Index Average). The communication supports the 'No new JIBAR' initiative and provides guidance for banks and financial institutions managing this benchmark rate transition.

Amendment of Insurance Group Designation - Santam Insurance Group

The South African Reserve Bank Prudential Authority issued a notice amending the designation of Santam Insurance Group. The amendment was made by Ms Fundi Tshazibana, Chief Executive Officer of the Prudential Authority. The specific details of the amendment are contained in the attached PDF notice.

Amendment of Insurance Group Designation - Absa Financial Services Limited

The SARB Prudential Authority, under CEO Ms Fundi Tshazibana, has amended the designation of the Absa Financial Services Limited Insurance Group for purposes of insurance group supervision. The amendment, effective 24 March 2026, is made pursuant to section 10(5) of the Insurance Act 18 of 2017.