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 thereof28. Market risk (Position risk) |
| (1) | The purpose of this return is to measure the extent of the market risk (position risk) to which the reporting mutual bank is exposed. |
| (2) | Under market risk is understood the risk that the market-price of an asset could change, ‘which will result in a loss to the reporting mutual bank on realisation of that asset. |
| (3) | Examples of the market-price movements referred to in sub-regulation (2) are changes in interest rates, share prices and prices of commodities. |
(4)
| (a) | The financial instruments, assets and related derivatives to be included in the return are those that can be readily disposed of in established or acknowledged markets for financial instruments, derivatives and commodities. |
| (b) | The instruments and assets referred to in paragraph (a) shall be those that have been reported in form DI 100, against the line items identified on form DI 420, in the column headings under the markets indicated. |
| (5) | A mutual bank shall complete the form DI 420 in accordance with such instructions or requirements as may be determined or directed in writing by the Authority. |
[Regulation 28(5) substituted by section 22 of Notice No. 7414 of GG54593, dated 29 April 2026 - effective 1 May 2026]
[Deleted] Form DI420 - Directives and interpretations for completion