Regulatory Alerts2017-09-17
Basel Committee on Banking Supervision Joint Forum Document Regarding Longevity Risk Transfer Markets: Market Structure, Growth Drivers and Impediments
The Saudi Arabian Monetary Agency directs all domestic banks to integrate the Basel Committee on Banking Supervision’s Joint Forum report on Longevity Risk Transfer markets into their internal capital planning frameworks and employee pension fund management. This directive requires financial institutions to review the report’s analysis of market structure, growth drivers, and cross-sectoral risks before applying it to their operational practices. Banks must access the guidance via the Bank for International Settlements website to ensure alignment with emerging longevity risk transfer standards.
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- 1435/04/26. ,..__,_,JI From Saudi Arabian Monetary Agency CC H.E. Abdulaziz AI-Helaissi, Deputy Governor for Supervision To All Banks Attention : Managing Directors, Chief Executive Officers and General Managers Subject Basel Committee on Banking Supervision Joint Forum Document regarding Longevity Risk Transfer Markets: Market Structure, Growth Drivers and Impediments, and Potential Risks The aim of this Joint Forum report is to give a first and preliminary analysis of the size and structure of the LRT markets, and the factors affecting their growth and development. It will also seek to raise awareness of the associated potential risks and cross sectoral issues for market participants, policymakers and supervisors. Banks are expected to refer to this BCBS document as a guidance in managing their own banking employee pension funds. The Banks can access this BCBS document from BIS website: www.bis.org where they are expected to review it and incorporate it where relevant in their own internal capital planning framework. Best regards,
Alwaleed Alsheikh Director of Banking Supervision : I:!-'� : O:.l...ii_,.i1 P. 0. Box 2992 - Riyadh 11169, Saudi Arabia - Tel.: 01-463 3000 - Telex 404390 SJ - Fax 01-466 2119