Regulatory Alerts2013-02-01
Circular on Rules on Credit Risk Management
The Banking Supervision Department, under the authority of Governor Fahad Almubarak, issued new Rules on Credit Risk Management that come into immediate effect. Banks are required to align their existing policies, procedures, and structures with these Rules by June 30, 2013. Furthermore, they must submit a Board-approved copy of their revised Credit Policy to the Agency by the same deadline, and should approach SAMA for guidance on any implementation issues.
Banking Supervision Dept. 2010 respectively as well as any other related principles and standards including updates thereof issued by the relevant international standard setting bodies. 5) The enclosed Rules shall come into force with immediate effect and banks are required to take all necessary steps to bring their existing policies, procedures and structures in Hne with these Rules by 30 June 2013. Furthermore, they are also required to submit a copy of their revised Credit Policy fully aligned with these Rules and duly approved by their Board of Directors to the Agency latest by 30 June 2013. In case there are any practical issues in implementation of these rules, banks should approach SAMA to seek further guidance on addressing such issue Encl: As above. Fahad Almubarak Governor Page4 of4 P. O. Box 2992 - Riyadh 11169, Saudi Arabia - Tel.: O 1-463 3000 - Telex 404390 SJ - Fax 01-466 2119