Regulatory Alerts2015-07-08
Repo of Saudi Government Development Bonds, SAMA Bills, and Investment in SAMA Murabaha Transactions
The Saudi Arabian Monetary Agency (SAMA) has revised the repo facility available to Saudi Banks for their investments in Saudi Government Development Bonds and SAMA Bills. Effective July 31, 2015, this facility will increase from up to 75% to a maximum of 100% of the nominal value of holdings. Additionally, SAMA Murabaha transactions for Shariah Compliant banks will also be subject to a maximum 100% repo facility, up from the current 75%.
Saudi Arabian Monetary Agency
BANKING CONTROL
مؤسسة النقد العربي السعودي
الرقم : 361000126265 التاريخ : 1436/09/21 المرفقات :
July 2015
From : Saudi Arabian Monetary Agency (SAMA)
To : All Banks
Attention : Managing Directors, Chief Executive Officers and General Managers
Subject : Repo of Saudi Government Development Bonds, SAMA Bills and Investment in SAMA Murabaha Transactions
Following a review of international markets and liquidity practices in the Basel peer group countries, SAMA has decided to revise the amount of repo facility available to Saudi Banks on their investments in Saudi Government Development Bonds and SAMA Bills. With effect from 31st July 2015, SAMA repo facility will stand at a maximum of 100% of nominal value of holdings in Government Development Bonds and SAMA Bills versus the current ruling of up to 75%.
For the Shariah Compliant banks that have a cash management account with SAMA in the form of Murabaha, such Murabaha transactions will be subject to a maximum of 100% repo facility versus the current ruling of 75%.
[Signature] Osamah M. Shaker Director General of Banking Control
P.O. Box 2992 - Riyadh-11169, Saudi Arabia - Tel : 011-463 3000 - Telex 404390 SJ - Fax : 011-463 2090