South Africa

The Banks Act (Act No. 94 of 1990) serves as the legislative basis for the banking industry in South Africa and is characterized by a tough regulatory regime for the licensing, regulation, and prudential supervision of deposit-taking institutions. Governed by the powers vested in the Prudential Authority (PA) at the South African Reserve Bank, the Banks Act ensures financial stability within the country with such provisions as operating the banks as public companies, compliance with international Basel-compliant capital adequacy ratios, and curatorship in cases of distress. Even though the primary act became effective on 1 February 1991, it is constantly restructured in accordance with modifications in the macroeconomic risk environment, and the most recent administrative modification took effect on 12 October 2026 under Directive 5 of 2026, where outdated notices have been systematically withdrawn following major modifications in 2026, including Directive 3 of 2026, which modified the interest rate risk requirement of the banking book.