Regulatory Alerts2023-03-28
Loans to Deposits Ratio Guidelines
Issued by the Saudi Central Bank in March 2023, these updated guidelines revise the Loans to Deposits Ratio framework to comprehensively capture banks' funding bases and liquidity management. Banks must report their consolidated LOR monthly, calculating net loans against weighted deposits based on original or residual maturities while excluding most interbank and SAMA transactions. The regulations mandate maintaining a total LOR below ninety percent, subject to the numerator not exceeding the unweighted denominator, and take effect on June 15, 2023.
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