Regulatory Alerts2017-09-19
Basel III Leverage Ratio Framework
The Saudi Arabian Monetary Agency (SAMA) requires all domestic banks to review the Bank for International Settlements' October 2014 Frequently Asked Questions (FAQs) on the Basel III leverage ratio framework as part of its domestic implementation guidelines. The document clarifies five critical areas, including cash variation margin recognition for derivatives, centrally cleared client exposures, securities financing transaction netting, cross-product netting agreements, and credit derivative exposure measures. By aligning these technical clarifications with SAMA’s August 2014 circular, the agency ensures consistent global application of leverage ratio standards ahead of the January 2015 effective date.
Share