Regulatory Alerts2019-08-09
Large Exposure (LEX) Rules for Banks
The Saudi Arabian Monetary Authority (SAMA) issued updated Large Exposure (LEX) Rules for banks to align domestic regulations with international best practices and Basel III standards. The framework establishes strict exposure limits for single counterparties, groups of connected counterparties, and commercial entities majority owned by the Saudi government, while mandating robust governance, stress testing, and regulatory reporting. Banks must apply these consolidated and standalone limits to their eligible capital base, ensuring concentrated risks are contained and financial system stability is maintained.
Share