The Basel III liquidity framework requires banks to adhere to a new Liquidity coverage ratio. In 2012, the Bank approved the provision of a CLF to commercial banks to assist them in meeting their Liquidity Coverage Ratio (LCR) as there is limited availability of high quality liquidity assets (HQLA) in South Africa. The Bank also approved that statutory cash reserves could be included in the banks’ high quality liquidity assets (HQLA) for purposes of calculating the LCR. Initially, the BSD published Guidance Note 5/2012 on 10 May 2012, which detailed acceptable collateral for the CLF. On 2 August 2013, the BSD issued Guidance Note 6/2013 (GN 6/2013) to replace the former, with the latter containing revised guidelines in terms of acceptable collateral for the CLF, as well as further details on the operational requirements thereof. The FMD formalised the operational arrangements pertaining to both the application for CLF by a bank as well as draw-down on the facility in an Addendum to the Operational Notice.