Regulatory Alerts2022-03-14
Rules on Liquidity Risk Management
The Saudi Central Bank has issued binding rules requiring all licensed finance companies to implement comprehensive liquidity risk management frameworks that integrate board oversight, stress testing, and high-quality liquid asset buffers. These regulations mandate systematic cash flow forecasting, defined risk tolerance limits, and contingency funding plans to ensure resilience against both expected and unexpected cash shortfalls under normal or stressed conditions. Full compliance is required by January 1, 2023, accompanied by mandatory monthly email reporting on adherence protocols starting in March 2023.
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