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SA banks feel the regulatory pressure

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The heat has been turned up on capital and liquidity requirements, systemic risk, conduct and supervision over the last five years in the EMA region and this is reflective of the similar pressures in South Africa and many of the countries in the rest of Africa.

These are some of the findings of the latest edition of KPMG’s Evolving Banking Regulation reports From Design to Implementation, delivered at the Finance Europe Forum last month.

From Design to Implementation provides an in-depth review of key banking regulatory developments, with global insights on approaches in implementing regulations and the issues for banks as they strive to adjust to stricter and in many cases new regulatory approaches.

“Banking regulatory reform has clearly moved from the design to the implementation phase,” says Jeremy Anderson, Global Chairman, Financial Services, KPMG International. “Our purpose with Evolving Banking Regulation is to help banking clients focus more clearly on the key implications of regulations being put in place and the steps they need to take to secure a viable and sustainable future.”

“This particular publication clearly sets out the ‘road map to implementation’ of the plethora of Banking related regulations that have been designed and developed over the last few years,” says Tim Bashall, Head of the KPMG Financial Services Regulatory Centre of Excellence in South Africa.

“The focus in this report on key regulatory developments, such as macro-prudential regulation, risk-weighted assets, comprehensive assessment and supervision, that are coming down the regulatory pipe are as relevant to and reflective of regulatory trends in South Africa, even though the articles in themselves are somewhat Global or Euro-centric.”

Jeremy Anderson adds: “Many banks to date have focused almost entirely on meeting new and tougher capital, leverage, and liquidity requirements, but while this may have enabled banks to meet immediate regulatory requirements, achieving a viable and sustainable future requires banks to also have a strategic focus on their customers, business and operating models, IT systems and data management, culture and governance.”