2014-09-24

Principles for Sound Liquidity Risk Management and Supervision

The Saudi Arabian Monetary Agency (SAMA) previously issued a circular on December 5, 2008, titled "Principles for Sound Liquidity Risk Management and Supervision," instructing banks to integrate these principles into their internal systems and processes and audit their compliance. After an initial audit and submission of findings, SAMA is now revisiting this circular to reassess implementation. Consequently, banks are required to conduct a new internal audit to evaluate their adherence to these Principles and submit a report to the Director of Banking Supervision by March 31, 2015.

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�aubf aralltarr fflonttarp �gencp 9041004081 , Banking Supervision Dept. From Saudi Arabian Monetary Agency To All Banks 3510001470.ZS.-.: �)I ___ _i435i12l0.L: �'-JI Attention: CFOs and CROs Subject: SAMA Circular # BCS n1 dated 5 December 2008 concerning Principles for Sound Liquidity Risk Management and Supervision On 5 December 2008, SAMA issued a Circular entitled "Principles for Sound Liquidity Risk Management and Supervision•. This circular was based on a BCBS document on this subject issued in September 2008. SAMA provided specific instructions to banks to introduce and integrate these Principles concerning Sound Liquidity Risk Management into their internal systems and processes. SAMA also instructed banks to audits their internal systems and processes against these Principles and submit a report to SAMA on the main findings. Banks had undertaken those audits and submitted their findings to SAMA. SAMA is now revisiting this circular and would like the Banks to arrange an internal audit to assess the implementation of these Principles by the Banks (refer to attachment for guidanc�). This report is to be submitted to the Director of Banking Supervision before 31 March 2015. Best regards, ,,.• _, Alwaleed Alshelkh Director of Banking Supervision :.:.L...Ji,>J ]L P. 0. Box 2992 • Riyadh 11169, Saudi Arabia· Tel.: 01-463 3000 • Telex 404390 SJ · Fax 01-466 2119