Regulatory Alerts2017-09-13
Sound Capital Planning Process: Fundamental Elements
The Saudi Arabian Monetary Agency directs all banks to integrate the Basel Committee on Banking Supervision's fundamental elements into their internal capital planning frameworks. Institutions must strengthen these processes to be comprehensive, forward-looking, and adequately formalized, ensuring capital retention aligns with potential future losses rather than premature dividend distributions or ill-suited hybrid debt issuances. Banks are expected to tailor these sound international practices to their specific circumstances and reference the guidance when preparing annual bank documents.
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