Basel Committee Documents Published on 16 December 2010

l I . "ft. �aubi �rabian �onetarp �gencp Banking Supervision Dept. From To Attention Subject 21 December 2010 � gg 7 . 8 c, S. , , VA Saudi Arabian Monetary Agency All Banks Managing Directors, Chief Executive Officers and General Managers Basel Committee Documents published on 16 December 2010: (1) Basel Ill - Global Framework for More Resilient Banks and Banking System: (2) Basel Ill - International Framework for Liquidity Risk Measurement Standards and Monitoring: and (3) Results of the Quantitative Impact Study On 16 December 2010, the Basel Committee on Banking Supervision has issued the rules text, which presents the details on Global Regulatory Standards on Bank Capital Adequacy and Liquidity agreed by the Governors and Heads of Supervision, and endorsed by the G-20 Heads of State at their November 2010 Summit in Seoul, Korea. The Committee has also published the results of its comprehensive Quantitative Impact Study (QIS). These documents are of interest to all banks in Saudi Arabia that have currently implemented the Basel 11 framework and are now preparing to move on to Basel Ill. Banks are expected to review these documents and start developing their plans for implementation of Basel Ill. Banks should study these carefully and become familiar with the rules text. Over the next few months, SAMA will be issuing specific guidance documents to banks on these subjects including SAMA's position in areas where national discretion is to be applied. SAMA will also issue revised or new prudential returns related to these topics. The Basel Committee has also released the results of the Quantitative Impact Study (QIS) that was carried out in 2009 and 2010. The QIS covered the impact on banks due to proposed rules relating to new Regulatory Capital and Liquidity. The results of the QIS should be of interest to all banks, particularly to the three (3) Saudi Banks that participated in this study. You can access the paper from the BIS website address: (http://www.bis.org). 9� L --·-- \ Dr. Abdulrahman Al Kalaf Deputy Governor for Technical Affairs P. 0. Box 2992 - Riyadh 11169, Saudi Arabia - Tel.: 0 1-463 3000 - Telex 404390 SJ - Fax 01-466 2119