Regulatory Alerts2020-09-09
Regulations for Accepting Term Deposits
The Saudi Arabian Monetary Authority (SAMA) issued the Deposit Taking Finance Companies (DTFCs) Regulations 2020 to establish comprehensive prudential, governance, and operational standards for finance companies authorized to accept term deposits. The regulations mandate a minimum capital of one billion Saudi Riyals, enforce strict liquidity and capital adequacy ratios, and require robust corporate governance, risk management frameworks, and segregation of duties. Additionally, the rules detail precise procedures for account opening, asset quality classification, loan provisioning, and regulatory reporting to ensure financial stability and compliance.
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