(Communication) sets out the responses by the Prudential Authority (PA) to the corona-virus disease 2019 (COVID-19) as well as the observed and predicted impact it has had, and is likely to have, on the South African economy, specifically co-operative financial institutions (CFIs) and co-operative banks (co-op banks). The approach of the PA is supported by the Co-operative Banks Development Agency (CBDA).

 

 The PA and the CBDA recognise that COVID-19 has had, and will have, an impact on the financial soundness of CFIs and co-op banks. The PA, nevertheless, expects that these institutions will continue to operate in a prudent, sound and socially responsible manner. To this end, this Communication outlines some of the temporary regulatory and supervisory actions that will be implemented by the PA to alleviate the stress caused by the COVID-19 pandemic on CFIs and co-op banks.

 

The PA and the CBDA will continue to engage with the financial co-operative sector as well as all other relevant stakeholders as further analysis on the impact of COVID-19 is conducted, and may issue further communication or implement additional actions in this regard.