| (1) | Risk profile of assets and off-balance-sheet activities as set out on forms DI 100 and DI 110: |
| (a) | For purposes of calculating the minimum share capital. and unimpaired reserve funds that a mutual bank is required to maintain, the assets and off-balance sheet activities are categorized according to their risk profiles and accorded applicable risk weights. |
| (b) | For the purposes referred to in paragraph (a), the amounts recorded in the columns "Month-end balance" on forms DI 100 and DI 110 shall be categorized monthly. |
| (c) | The quarterly average (average for the three month-ends comprising the reporting quarter) of the totals of the risk-weighting columns on forms DI 100 and DI 110 shall be recorded against line items 1 and 2 in Division 1 of form DI 400. |
| (d) | The directives and interpretations contained in subregulations (6) and (7) shall apply in respect of the completion of the applicable items on forms DI 100 and DI 110. |
| (e) | The value of assets representing impairments of capital and reserves, which, in terms of section 48(5)(a) of the Act, must be deducted from the total amount of primary and secondary issued share capital and primary and secondary unimpaired reserve funds, shall be included in the impairment column on form DI 100. The quarterly average of such amounts shall be recorded against line item 38 in Division II of form DI 400. |
For the purposes of this regulation, "OECD countries" means those countries which are full members of the Organisation for Economic Co-operation and Development or countries which have concluded special lending arrangements with the International Monetary Fund in terms of the said Fund’s General Arrangements to Borrow.
The following countries fall into this category:
| Italy | United States of America |
Japan
Where a specific provision has been raised against an asset, the amount of the provision shall be recorded in the risk-weighting column in which the asset concerned is reported, against the applicable "specific provision" line item (asset line item 53 or 62, as the case may be) on form DI 100.
| (4) | Minimum share capital and unimpaired reserve funds |
| (a) | For the purposes of the determination, in form DI 400, of the minimum amount of primary and secondary share capital and primary and secondary unimpaired reserve funds required to be maintained by a mutual bank in terms of section 48(2)(b) of the Act, the quarterly average amount referred to in line item numbers 1 and 2, respectively, in form DI 400 shall be the average, as determined in subregulations (1)(b) and 1(c) hereinbefore, of the book values of assets and off-balance-sheet activities in respect of each of the three months comprising the relevant calendar quarter, and shall be used in conjunction with the applicable risk-weight percentage as hereinbefore in this regulation prescribed, so as to determine the said minimum amount of primary and secondary share capital and primary and secondary unimpaired reserve funds. |
| (b) | The percentage, contemplated in section 48(2)(b) of the Act, of the amount of a mutual bank's assets and other risk exposures adjusted through the application of the prescribed risk weightings), and which is to be used, as contemplated in that section, to calculate the minimum share capital and unimpaired reserve funds that the mutual bank is required to maintain in terms of that section shall be a minimum of 8 per cent, or such a higher percentage a may be determined by the Registrar in consultation with the Governor of the S A Reserve Bank, to be inserted in line item 12 in Division I of form DI 400 for the purpose of the calculation of the minimum amount of share capital and unimpaired reserve funds that the reporting mutual bank is required to maintain. |
[Regulation 23(4)(b) substituted by section 5 of Notice No. R.1008 of GG22738, dated 5 October 2001 - effective 1 October 2001]
| (c) | The Registrar may, with the consent of the Minister, determine risk-weight percentages in respect of assets and other risk exposures (including assets and other risk exposures identified to exist in a country other than the Republic) that are not specifically referred to in these Regulations. |
| (5) | Conditions for issue of debt instruments of which the proceeds rank as secondary share capital |
The issue of debt instruments contemplated in section 48(1) of the Act, shall be subject to the following conditions, namely—
| (a) | prior written approval of the Registrar is required before debt investments can be issued; |
| (b) | the debt instruments shall not be payable to bearer; |
| (c) | no asset of the bank issuing the debt instruments may be pledged or otherwise encumbered as security for any liability by virtue of the debt instruments; |
| (d) | the debt instruments shall be issued for a minimum period of five years; |
| (e) | the debt instruments may be redeemed before maturity only at the option of the bank concerned and with the prior written approval of the Registrar; |
| (f) | notwithstanding the provisions of any other Act, in the event of the winding-up of the bank concerned, the capital amount of the debt instruments shall not be repaid until the claims of other creditors have been fully satisfied; and |
| (g) | the amount obtained by way of the issue, after the date of commencement of this Act, of debt instruments and that may in terms of this section rank as secondary share capital shall (except in the case of such debt instruments which are to be converted into shares representing capital that may in terms of this section rank as primary or secondary share capital) during the fifth year preceding the maturity of such debt instruments be reduced by an amount equal to 20 per cent of the amount so obtained and, annually thereafter, by an amount that in each successive year is increased by 20 per cent of the amount so obtained. |
| (6) | A mutual bank shall complete the form DI 400 in accordance with such instructions or requirements as may be determined or directed in writing by the Authority. |
[Regulation 23(6) substituted by section 12 of Notice No. 7414 of GG54593, dated 29 April 2026 - effective 1 May 2026]
| (7) | Reduction of capital requirement in respect of loans (including loans made through the taking up of preference shares), advances, leasing transactions, suspensive sale transactions and off-balance-sheet lending transactions (including performance related guarantees) guaranteed or secured: |
Where loans, advances, leasing transactions, suspensive sale transactions and off-balance-sheet lending transactions are:
| (a) | guaranteed, the risk weightings applicable to the transactions in question may be reduced to the risk weightings applicable to the guarantor. The lower weightings shall apply only to the outstanding amounts of the transactions covered by the guarantee; |
| (b) | secured by the pledge of assets that attract a lower risk weighting than the transactions themselves, the risk weightings applicable to the assets pledged shall apply. The lower weightings shall apply only to the outstanding amounts of the transactions covered by the pledge of assets; and |
| (c) | secured by the pledge of deposits, such transactions shall be reallocated risk weightings as follows: |
deposits made with:
| - | the reporting mutual bank |
|
0%
|
| - | banks and mutual banks within the same group |
|
0%
|
| - | other banks and mutual banks |
|
20%
|
[Deleted] Form DI400 - Directives and interpretations for completion
