The GNU completed a program of structural reforms, including progressive current and capital account liberalization, committed to respect the independence of the SARB (South African Reserve Bank), and announced a development strategy emphasizing gradual fiscal consolidation.
These measures, under Pillar 1, include introduction of an incremental risk charge (IRC) for specific risk or credit risk in trading book under the Internal Models Approach (IMA). Capital charge for securitization of commercial real estate was increased and that for re-securitization introduced. The Value-at-Risk (VaR)-based measure for capital charge for market risk under IMA has been substantially enhanced by including a stressed-VaR element.