Regulatory Alerts2011-12-31
SAMA Enhancement #1 to Bank Disclosure Requirements Under the Basel II Framework Pillar 3 Component
The Saudi Arabian Monetary Agency (SAMA) issued Enhancement #1 to mandate updated qualitative and quantitative disclosure templates for banks' securitization activities under the Basel II Framework Pillar 3 regime. The updated requirements address trading book exposures, off-balance sheet vehicle sponsorship, internal assessment approaches, re-securitization, valuation, and pipeline risks. Banks must implement the attached Pillar 3 disclosure templates starting January 1, 2012, with initial reporting covering data as of June 30, 2012.
• �aubi �rabian fflonetarp �gencp Banking Supervision Dept. $1 December 2011 :TQJ1t/ .& 0£: r·tt� From Saudi Arabian Monetary Agency To All Banks Attention Managing Directors, Chief Executive Officers and General Managers Subject Enhancement #1 to SAMA's Bank Disdosure Requirements Under the Basel II Framework Pillar 3 Component The BCBS in its document of July 2009 entitled "Enhancements to the Basie II Framework" initiated further improvements to its Pillar 3 regime with regard to the securitization activities of banks, which were circulated through SAMA Circular BCS 13134 of 11 May 2010. The new BCBS requirements have led to modifications and enhancements to SAMA's existing Basel II Pillar 3 requirements implemented in January, 2008, and consequently, are now part of SAMA's overall Pillar 3 disclosure regime. These enhancements are related to qualitative and quantitative aspects of the following elements of the securitization activities: Securitization Exposures in the Trading Book 11. Sponsorship of Off-Balance Sheet Vehicles "' lnterna: Assessment Approach (IAA) and other ABCP Liquidity Facilities :v. Re-Securitization Exposures v. Valuation with Regard to SecUi-itization Exposures v1. Pipeline and Warehousing Risks with Regard to Securitization Exposures vii. Others The attached Pillar 3 Disclosure Requirement Templates are to be implemented effective 1 st January 2012, which means that the first set of templates will cover data as at 30th June 2012. 9, ·_l. � .. � I,. 1-:ncl: a;s C7 \ \ Dr. Abdulrahman Al Kalaf Deputy Governor for Technical Affairs 't/ P. 0. Box 2992 - Riyadh 11169, Saudi Arabia - Tel.: 01-463 3000 - Telex 404390 SJ - Fax 01-466 2119