Regulatory Alerts2020-10-18
Guidelines on the Internal Liquidity Adequacy Assessment Plan (ILAAP)
The Saudi Arabian Monetary Authority issued updated guidelines requiring all locally incorporated banks in Saudi Arabia to implement and annually submit a comprehensive Internal Liquidity Adequacy Assessment Plan (ILAAP) by August 31. These guidelines mandate that the ILAAP be approved by the Board of Directors, integrate robust stress-testing and contingency funding strategies, and remain proportionate to each institution's size, complexity, and risk profile. The updated framework supersedes prior circulars and takes effect for the 2021 submission cycle, ensuring banks maintain adequate liquidity resources aligned with their strategic objectives and regulatory requirements.
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