Broad-Based Black Economic Empowerment Act, 2003
R 385
Banks Act, 1990 (Act No. 94 of 1990)RegulationsRegulations relating to Banks' Financial Instrument TradingChapter 2 : General8. Trading book: capital requirements |
| (1) | For purposes of CAR, capital requirements are imposed on the trading activities of a bank, in respect of: |
| (a) | Position-risk for debt and equities. |
| (b) | Settlement and counterpart risk. |
| (c) | Large exposures. |
| (d) | Foreign-exchange risk. |
| (2) | All transactions, including forward sales and purchases and credit- derivative transactions, relating to the trading activities of the reporting bank shall be included in the calculation of capital requirements as from the dates on which the transactions were entered into. |
| (3) | Although reporting shall take place monthly, banks shall manage the market risk in their trading book in such a way that the capital requirements are being met on a continuous basis, that is, at the close of each business day. |
| (4) | Banks shall maintain adequate risk-management systems in order to ensure that intraday exposures are not excessive. |
[Regulation 8 substituted by regulation 2 of Notice No. R. 1465, GG 24088, dated 22 November 2002]
