Regulatory Alerts2016-06-21
Framework on Monitoring Tools for Intraday Liquidity Management
The Saudi Arabian Monetary Agency mandates that all licensed banks implement a standardized reporting framework and monitoring tools for intraday liquidity risk effective 1 January 2017. This regulation requires financial institutions to apply defined stress scenarios, complete the designated liquidity template, and submit regular reports that enable supervisors to continuously evaluate payment settlement capabilities. The framework incorporates Basel standards alongside national discretion options, ensuring consistent risk assessment and timely compliance across the domestic banking sector.
# Saudi Arabian Monetary Agency
## BANKING CONTROL
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**From**: Saudi Arabian Monetary Agency
**To**: All Banks
**Attention**: Managing Directors, Chief Executive Officers and General Managers
**Subject**: Framework on monitoring tools for intraday liquidity management
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### Background
The Basel framework on monitoring tools for intraday liquidity management introduces a new reporting framework that will enable banking supervisors to better monitor a bank's management of intraday liquidity risk and its ability to meet payment and settlement obligations on a timely basis along with providing supervisors with a better understanding of banks’ payment and settlement behaviour. This framework includes:
- the detailed design of the monitoring tools for a bank's intraday liquidity risk;
- stress scenarios;
- key application issues; and
- the reporting regime.
SAMA has conducted a consultation process with the Saudi Banks in the development of this final regulation, which is attached in the annexures containing:
- Annexure 1: Monitoring tools for intraday liquidity management (available on BIS website [http://www.bis.org/publ/bcbs248.pdf](http://www.bis.org/publ/bcbs248.pdf)).
- Annexure 2: SAMA’s position on National Discretion
- Annexure 3: Intraday liquidity template
- Annexure 4: Frequently Asked Questions (FAQs) and answers
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### Implementation date
These rules are applicable from 1 January 2017 as specified in the Basel document.
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**For**: Thamer M. AlEssa
Director General of Banking Control
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P.O. Box 2992 - Riyadh-11169, Saudi Arabia - Tel : 011-463 3000 - Telex 404390 SJ - Fax : 011-463 2090
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**June 2016**
**الرقم**: 371000101113
**التاريخ**: 1437/09/15
**المرفقات**:
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