As part of its post-crisis reform efforts, the Basel Committee established the Regulatory Consistency Assessment Programme (RCAP) to assess members’ implementation of the Basel standards. The assessments are conducted by a team of regulatory specialists from other Basel Committee member countries. The objective of the RCAP is not to assess individual banks or system-wide preparedness to meet Basel standards, but rather to assess the consistency of domestic regulations with Basel standards and prescribed phase-in periods.
South Africa was also subjected to an RCAP assessment, which commenced during the latter part of 2014. The RCAP for South Africa focused on both risk-based capital and Basel III standards on liquidity.
The outcome of South Africa’s assessment was published on 15 June 2015.
The local implementation of the Basel III-framework (including Basel 2 and 2.5) was found to be "compliant" with the Basel standards as all 14 components were assessed as "compliant". South Africa was also assessed as "compliant" with the Basel LCR standards, including the LCR regulation and the LCR disclosure standards.
The full reports are available at:
The Core Principles for Effective Banking Supervision, developed by the Basel Committee on Banking Supervision in cooperation with fellow supervisors, have become de facto the standard for sound prudential regulation and supervision of banks. The Core Principles are mainly intended to help countries assess the quality of their systems and to provide input into their reform agenda.
The Core Principles for Effective Banking Supervision is available at the following link: Core Principles
An assessment of the current situation of a country’s compliance with the Principles can be considered a useful tool in a country’s implementation of an effective system of banking supervision.
The IMF conducted an assessment of the current state of implementation in South Africa of the Core Principles as part of a Financial Sector Assessment Programme (FSAP). The detailed assessment report on South Africa’s compliance with the Core Principles was published in March 2015 and a summary was included as part of South Africa’s Financial System Stability Assessment.
The detailed assessment report is available at:
Key findings from the assessment are as follows: