Regulatory Alerts2017-09-18
Framework for Domestic Systemically Important Banks
The Saudi Arabian Monetary Agency (SAMA) issued a framework to identify and designate Domestic Systemically Important Banks. This indicator-based methodology assesses systemic importance using size, interconnectedness, substitutability, and complexity metrics. Effective January 2016, designated banks must meet additional Higher Loss Absorbency capital requirements.
, Banki11g Supervision Dept. From To Attention Subject Saudi Arabian Monetary Agency All Banks -351-000138356 : �JI 1435111 /1J.__: �)-:ill -...: ..::.l....ll.,.ii August2014 9041002962 Managing Directors, Chief Executive Officers and General Managers Domestic Systemically Important Banks(D.SIBs) Framework In order to identify and designate D·SIBs in Saudi Arabi� SAMA has developed the enclosed assessment methodology providing for an indicator-based measurement approach. This methodology takes into account the size, interconnectedness, substitutability and complexity of a bank while determining its systemic importance. The enclosed methodology will be implemented effective from 1 st January 2016. Accordingly, banks designated as O-SIBs will be required to meet additional Higher Loss Absorbency(HLA) capital requirements as prescribed in the enclosed methodology. Jf Deputy Governor for Supervision Encl: As above. P. 0. Box 2992 - Riyadh 11169, Saudi Arabia - Tel.: 0 1-463 3000 - Telex 404390 SJ - Fax 01 ·466 2119