Banks Act: Prudential Authority Seeks Input on Basel III Roadmap

Posted 24 July 2025 Written by Acts Online
Category Financial Sector

Brought to you by SA Legal Academy: The Prudential Authority (PA) has invited stakeholders to comment on a draft directive concerning the implementation roadmap for Basel III post-crisis reforms.

In terms of the Banks Act, No. 94 of 1990, the PA is proposing a structured timeline to integrate international regulatory standards into the South African banking framework. The draft directive acknowledges that the transition entails significant effort and resources, requiring a phased approach to ensure stability and compliance across the sector.

The proposed roadmap incorporates several critical regulatory considerations, including:

  • Phased implementation timelines for specific Basel III post-crisis reform components;
  • Internal governance requirements for banks during the transition period; and
  • Formal approval procedures required by the Prudential Authority for internal model applications.

The PA has specifically noted that the roadmap is designed to account for the ‘effort and significant resources’ banks must dedicate to making necessary structural and reporting changes. Stakeholders and interested parties are required to submit their input on the draft directive by no later than 11 August 2025.

What this means for you, your business, or your clients

  • For yourself: No direct individual obligations; however, professionals in risk and compliance must update their technical knowledge of the revised credit, operational, and market risk frameworks under the Banks Act, No. 94 of 1990.
  • For your business: Audit and compliance firms should prepare for increased demand for independent reviews of transition plans and internal governance frameworks as banks move toward the implementation deadlines.
  • For your clients: Banking institutions must initiate comprehensive impact assessments and allocate budgetary resources for system upgrades to meet the phased reporting requirements outlined in the 2025 roadmap.

Originally published at https://legalacademy.co.za/news/read/banks-act-input-sought-on-proposed-basel-iii-post-crisis-reforms-implementation-roadmap

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