Regulatory Alerts2014-11-09
SAMA's Revised Amended Liquidity Coverage Ratio Regulations and Guidance Documents
SAMA issued amended Liquidity Coverage Ratio (LCR) regulations and general guidance, continuing to monitor LCR based on this updated package. These regulations require banks to maintain a stock of unencumbered High-Quality Liquid Assets (HQLA) sufficient to cover net cash outflows for a 30-day stress scenario, ensuring the LCR remains at or above 100% outside of stress periods. The guidance details the definition, characteristics, and operational requirements for HQLA, and outlines SAMA's supervisory responses for banks whose LCR falls below the 100% threshold.
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