Regulatory Alerts2012-10-22
SAMA Finalized Guidance on Basel II.5 Standardized and IRB Approaches
The Saudi Arabian Monetary Authority (SAMA) issues finalized guidance establishing capital adequacy requirements for implementing Basel II.5, mandating compliance with Credit and Market Risk frameworks under both Standardized and Internal Ratings-Based approaches alongside Pillar 2 ICAAP and Pillar 3 disclosure rules. The framework takes effect on January 1, 2013, requiring banks to submit their first quarterly prudential returns for data as of March 31, 2013 by April 30, 2013. Foreign bank branches are exempt from direct submission as SAMA coordinates their capital adequacy planning with home supervisory authorities.
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