Regulatory Alerts2018-01-11
Decrease in Risk-Weighted Assets (RWA) Rate for Residential Mortgages from 75% to 50%
The Saudi Central Bank (SAMA) has reduced the Risk-Weighted Assets (RWA) rate for residential mortgage financing from 75% to 50%, effective 1 January 2018. This regulatory change, supported by impact analysis studies on Basel-aligned ratios, mandates that local banks operating in the Kingdom implement the new rate starting with their Q1 2018 prudential reporting templates (Q17). The adjustment reflects ongoing regulatory developments in mortgage financing and collateral execution, ensuring continued alignment with existing and new Basel requirements.
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