Regulatory Alerts2011-11-19
Monitoring Liquidity Risk through Basel 3 Framework Concerning Minimum Regulatory Liquidity Standard Ratios
SAMA’s Banking Supervision Department mandates that all licensed banks monitor and report their Liquidity Coverage Ratio (LCR) and Net Stable Funding Ratio (NSFR) under the Basel 3 framework. Institutions must submit these liquidity returns quarterly, with the initial reporting period ending 31 March 2012 due by 15 May 2012. The directive explicitly directs banks to utilize existing BIS guidance documentation while focusing exclusively on the specified liquidity metrics.
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