Banks Act, 1990 (Act No. 94 of 1990)

Regulations

Regulations relating to Banks

Chapter II : Financial, Risk-based and other related Returns and Instructions, Directives and Interpretations relating to the completion thereof

25. Credit risk: six monthly return

Directives and interpretations for completion of the six-monthly return concerning credit risk (Form BA 220)
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(1)The content of the return is confidential and not available for inspection by the public.

 

(2)The purpose of the return is to obtain selected information in respect of assets bought-in.

 

(3)The relevant calculation of the reporting bank's required amount of capital and reserve funds in respect of assets bought-in is contained in the form BA 200. Instead of providing any information related to the required amount of capital and reserve funds in respect of assets bought-in, the form BA 220 merely provides selected credit risk related information in respect of such assets bought-in.

 

(4)Instructions relating to the completion of the six-monthly form BA 220 are furnished with reference to specific headings and item descriptions appearing on the form BA 220, as follows:

 

Item number

 

1 to 5Companies acquired

 

These items shall reflect the relevant aggregate amounts relating to companies acquired or bought-in during the preceding five years in order to protect an investment, loan or advance and which companies have not been disposed of at the end of the reporting period. After a lapse of five years any relevant company bought-in shall no longer be regarded as an asset bought-in to protect an advance or investment, and shall be reclassified to the appropriate asset class.

 

6 to 11Immovable assets

 

These items shall reflect the relevant aggregate amounts relating to immovable assets acquired or bought-in during the preceding five years in order to protect a loan or advance and which immovable assets have not been disposed of at the end of the reporting period. After a lapse of five years any relevant asset bought-in shall no longer be regarded as an asset bought-in to protect a loan or advance, and shall be reclassified to the appropriate asset class.