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The basis for banking regulation in the SAR is the "Safer Financial Sector to Better Serve South Africa" document issued by the National Treasury. SARB, one of the country’s main financial regulators, is responsible for protecting the national currency & ensuring sustainable economic growth. 2018 saw enactment of the FSR, a law aimed at creating a regulatory & supervisory structure. In particular, it’s meant to ensure:

  • trust in the country’s financial system;
  • financial institutions’ safety & reliability;
  • protection of clients & their fair treatment;
  • financial system’s efficiency;
  • financial crime prevention;
  • transformation of the country’s financial sector. 

The following pieces of legislation form a basis for supervision & regulation of the SAR’s banking sector:

  • Banking Act;
  • Cooperative Banks Act;
  • Mutual Banking Act;
  • National Payment Systems Act; 
  • Companies Act.

If you decide to register a banking company in South Africa, please note that banks there are regulated by the following agencies:

  • SARB;
  • BSD;
  • FIC;
  • NCR.

To ensure compliance with the BCBS, new requirements have recently been introduced to the Banking Law. Some of them included:

  • capital disclosure;
  • revision of the liquidity coverage ratio;
  • limited liquidity claims;
  • liquidity disclosure;
  • intraday liquidity management; 
  • public disclosure related to the leverage ratio.

If you’re planning to start financial activities in South Africa, you should keep in mind that you’ll be required to ensure compliance with the standards for banks & their key stakeholders (including those relating to financial stability).

Conclusion

 

If you need more information on the topic or require advice on obtaining a financial license in South Africa, please consider contacting IQ Decision UK.