| (1) | The content of the relevant return is confidential and not available for inspection by the public. |
| (2) | The purpose of the directives contained in this regulation 37 and in the form BA 610, amongst other things— |
| (a) | is to ensure that foreign operations of South African banks are prudently managed; |
| (b) | is to obtain selected information relating to the foreign operations of South African banks in order to evaluate the risks that such operations are exposed to, which risks may pose a threat to the safety and soundness of the banking group in respect of which the said operation is a member, including selected information in respect of each relevant foreign operation’s— |
| (i) | on-balance sheet assets and liabilities; |
| (ii) | off-balance sheet items; |
| (iii) | profit or loss situation; |
| (v) | exposure to credit risk; |
| (vi) | exposure to liquidity risk; |
| (vii) | exposure to market risk; |
| (viii) | exposure to operational risk; |
| (ix) | exposure to equity risk arising from positions held in its banking book; |
[Regulation 37(2)((b) substituted by regulation 20 of Notice No. 297, GG 40002, dated 20 May 2016]
| (c) | is to evaluate the adequacy of risk management and internal controls of the said foreign operation; |
| (d) | is to obtain an understanding of the activities conducted by the said foreign operation; |
| (e) | is to ensure that the said foreign operation, based on its risk profile, is adequately capitalised. |
| (3) | Unless specifically otherwise provided in this regulation 37 or specified in writing by the Registrar, all the relevant directives and interpretations— |
| (a) | relating to the completion on a solo basis of the respective risk-based returns by a bank in the Republic; or |
| (b) | for the calculation on a solo basis of the relevant minimum required amount of capital and reserve funds of a bank in the Republic, |
shall mutatis mutandis apply to the return to be completed in respect of any foreign operation of the said bank in the Republic or for calculating the relevant minimum required amount of capital and reserve funds to be held by the said foreign operation, provided that—
| (i) | based on the circumstances prevailing in each relevant country the said foreign operation shall apply and interpret any relevant definition contained in these Regulations, provided that in cases of uncertainty or when a conflict in interpretation may arise the said bank or foreign operation shall in writing refer the matter to the Registrar for a directive to be issued in terms of the provisions of section 6(6) of the Act; |
| (ii) | subject to the prior written approval of and such conditions as may be specified in writing by the Registrar a foreign operation of a bank in the Republic may complete the required information based on the rules and regulations of a relevant host supervisor when the said rules and regulations— |
| (A) | are deemed by the Registrar to be equivalent in all material respects to the relevant requirements specified in these Regulations; or |
| (B) | result in more complete or accurate information. |
| (4) | Unless specifically otherwise provided in this regulation 37 or specified in writing by the Registrar, all the relevant provisions specified or envisaged in regulation 36(17) in respect of governance, risk management and internal controls shall mutatis mutandis apply to any foreign operation of the relevant bank. |
