(3)        Minimum level one high-quality liquid assets

A bank shall maintain the minimum required amounts of prescribed minimum reserve balance and level one high-quality liquid assets during the period from the fifteenth business day of the month following the month or calendar quarter to which a particular return relates up to and including the fourteenth business day of the month following the month or calendar quarter in respect of which the next monthly or quarterly return, as the case may be, is to be furnished by the reporting bank.

Provided that—

(7)        Assets acquired in terms of a resale agreement

An asset acquired by a bank in terms of a resale agreement and which asset is a level one high-quality liquid asset as defined in section 1 of the Act shall for the purposes of section 72(1) of the Act rank as a level one high-quality liquid asset of the said bank having acquired the said asset in terms of the resale agreement, instead of the bank that sold the asset in terms of the repurchase agreement, provided that the asset has not been disposed of under a further repurchase agreement and has not been encumbered or lodged as security by the said bank.

A bank shall value level one high-quality liquid assets held at the close of business on any day during the period prescribed in subregulation (5) for the purposes of complying with the provisions of section 72(1) of the Act based on the daily market yields published by the Reserve Bank on Reuters page SARB 20 and/or such other page as may be specified by the Reserve Bank from time to time for accommodation collateral purposes.

Line item

number

This item shall reflect the relevant required aggregate amount relating to amounts owed by banks, branches and mutual banks in the Republic to the reporting bank, including any relevant amount related to a loan granted in terms of a resale agreement, provided that no amount relating to any amount owed to the reporting bank by the Reserve Bank shall be included in the aforesaid aggregate amount.

The purpose of the deduction is to avoid double reserving against liquidity risk in the South African banking system.

This item shall reflect the relevant required aggregate amount relating to funding received in respect of repurchase agreements with a term of 31 days or shorter, with instruments such as Government securities, Treasury bills and Reserve Bank securities, qualifying as level one high-quality liquid assets, as underlying security.

This item shall reflect the relevant required average daily minimum reserve balance to be held as from the fifteenth business day of the month following on the month to which the return relates, that is, item 9 column 2 multiplied by the required percentage.

This item shall reflect the relevant required average daily minimum reserve balance to be held with the Reserve Bank as from the fifteenth business day of the month following on the month to which the return relates, that is, item 10 less item 11.

This item shall reflect the relevant amount of level one high-quality liquid assets required to be held as from the fifteenth business day of the month following on the month to which the return relates, that is, item 4 column 2 multiplied by the prescribed percentage specified in item 14.

The reporting bank shall record in items 16 to 23 the average daily amount of its holdings during the prescribed period of the individual categories of level one high-quality liquid assets, valued in accordance with the requirements specified in section 72(4) of the Act.

The individual level one high-quality liquid asset items identified shall include the average daily amounts during the prescribed period of level one high-quality liquid assets acquired under resale agreements, but shall not include the average daily amounts of such assets sold under repurchase agreements.