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The Reserve Bank's capital requirement for commercial banks set in terms of their risk weighted assets (RWA). The bank's RWA is made up of its Tier I, Tier II and Tier III assets. The minimum requirement is that banks must keep at least 10% of their RWA and can only lend out a maximum of 90%. In general, South African banks maintain a much more conservative capital adequacy ratio than 10% and are among the best capitalised banks in the world.