Mutual Banks Act, 1993 (Act No. 124 of 1993)RegulationsRegulations relating to Mutual BanksChapter II : Risk-based Returns and Instructions, Directives and Interpretations relating to the completion thereof22. Minimum reserve balance and minimum liquid assets |
| (1) | The provisions of any Notice issued by the Governor of the Reserve Bank under section 10A of the South African Reserve Bank Act, 1989 (Act No. 90 of 1989), regarding the determination of the minimum reserve balance to be held with the Reserve Bank, and the provisions of regulation 10(1) and (2) regarding the average daily amount of Reserve Bank notes and subsidiary coin and liquid assets held during the reporting month, shall be complied with. |
| (2) | Minimum liquid assets |
| (a) | For the purposes of complying with the provisions of section 50(1) of the Act, a mutual bank shall, during the period prescribed in subregulation (3), hold an average daily amount of liquid assets that shall not be less than an amount equal to 5 per cent of its adjusted total liabilities to the public as shown in line item number 3 of the latest monthly return of form DI 310 furnished to the Registrar. Provided that the minimum amount of liquid assets held on any day during the period prescribed in subregulation (3) shall not be less than an amount equal to 75 per cent of the average daily amount of liquid assets required to be held by the bank in terms of this subregulation; and |
| (b) | no foreign-currency assets, except gold coin and bullion, shall qualify as liquid assets. |
| (3) | Period of maintenance of prescribed minimum reserve balance and liquid assets |
A mutual bank shall maintain the minimum amounts during the period from the fifteenth business day of the month following the month or calendar quarter to which a particular return relates, up to and including the fourteenth business day of the month following the month or calendar quarter in respect of which the next monthly or quarterly return, as the case may be, is to be furnished by the reporting bank.
| (4) | Assets pledged or otherwise encumbered |
| (a) | Unless an exemption has been granted by the Registrar in terms of the proviso to section 50(3) of the Act, only assets not pledged or otherwise encumbered may be utilized as liquid assets. |
| (b) | Securities lodged with the Reserve Bank to secure facilities shall not be regarded as pledged except to the extent that they are required to secure facilities actually utilised. |
| (5) | A mutual bank shall complete the form DI310 in accordance with such instructions or requirements as may be determined or directed in writing by the Authority. |
[Regulation 22(5) substituted by section 10 of Notice No. 7414 of GG54593, dated 29 April 2026 - effective 1 May 2026]
Line item number
16 |
Additional interest-bearing reserve balance requirement [Item 16 paragraph deleted by section 3(a) of Notice No. R.500 of GG18809, dated 1 April 1998]
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12-19 |
Average daily amount of liquid assets held The reporting mutual bank shall record, in items 12 to 19, the average daily amounts of its holdings during the prescribed period of the individual categories of liquid assets, valued in accordance with the requirements of section 50(4) of the Act.
The individual liquid asset items identified shall include the average daily amounts during the prescribed period of liquid assets acquired under resale agreements, but shall not include the average daily amounts of such assets sold under “repurchase agreements." [Paragraphs substituted by section 3(b) of Notice No. R.500 of GG18809, dated 1 April 1998]
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20-26 |
Memorandum items The total of the average daily amounts of all liquid assets acquired under resale agreements and physically held, or sold under repurchase agreements, during the prescribed period, and included in items 20 to 26, shall be recorded in items 29 and 30, respectively. [Paragraph substituted by section 3(c) of Notice No. R.500 of GG18809, dated 1 April 1998] |
[Deleted] Form DI310 - Directives and interpretations for completion