Regulatory Alerts2017-05-23
Circular dated May 23, 2017 regarding the Microfinance Initiative
Below are the details for each category. **Category A: (Less than 5% of banks) - Less stringent measures, less capital required** | Measure Level | Category A Details | Additional Information | |---------------|-----------------------------------------------------------------|---------------------------------------| | أقل من | (Less than 7 days) The stressed banks' segment is considered more vulnerable. | Stressed banks must hold additional capital. | | | | 30 days of capital buffer | | | Less stringent measures, less capital required | | | | Capital adequacy ratio may be higher, reflecting more risk-taking capacity.| | **Category B: (Between 5% and 25% of banks) - More stringent measures, more capital required** | Measure Level | Category B Details | Additional Information | |---------------|-----------------------------------------------------------------------------|---------------------------------------| | ١٠ أمريكي | (Between 7 and 30 days) The stressed banks' segment is considered more vulnerable. | Stressed banks must hold additional capital. | | | | 60 days of capital buffer | **Category C: (Between 25% and 50% of banks) - More stringent measures, significantly more capital required** | Measure Level | Category C Details | Additional Information | |---------------|---------------------------------------------------------------------------------------------|---------------------------------------| | ١٠ أمريكي | (Between 30 and 90 days) The stressed banks' segment is considered more vulnerable. | Stressed banks must hold additional capital. | | | | 120 days of capital buffer | **Category D: (Above 50% of banks) - More stringent measures, much more capital required** | Measure Level | Category D Details | Additional Information | |---------------|---------------------------------------------------------------------------------------------|---------------------------------------| | %100 | (Above 90 days) The stressed banks' segment is considered more vulnerable. | Stressed banks must hold additional capital. | | | | Limit for bank-specific capital buffers | **Category E: Systemically important financial institutions** | Measure Level | Category E Details | Additional Information | |---------------|---------------------------------------------------------------------------------------------|---------------------------------------| | (less than 10%) | The stressed banks' segment is considered more vulnerable. | Stressed banks must hold additional capital and follow the guidelines provided by the Central Bank of the respective country. Additionally, there are some institutions that are deemed as systemically important financial institutions which require them to follow stricter measures with even higher levels of capital buffers. Remember, each category has its own rules and requirements. It's also worth mentioning that this framework is flexible, so depending on the circumstances at that time, the details within each category could potentially be subject to change.