Regulatory Alerts2012-07-07
BCBS Releases Consultation Document on Measures to Address Domestic Systemically Important Banks (D-SIB)
The Saudi Arabian Monetary Agency has directed all licensed banks to evaluate the Basel Committee on Banking Supervision’s proposed framework for identifying and regulating Domestic Systemically Important Banks (D-SIBs). The principles-based rules require nationally designated D-SIBs to implement higher loss absorbency requirements by January 2016, granting national regulators discretion to tailor assessments to local economic structures. This consultation extends the November 2011 G-SIB standards to domestic markets, mitigating systemic and moral hazard risks while aligning with global phase-in timelines.
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