Regulatory Alerts2011-11-20
Globally Systemically Important Banks: Assessment Methodology and the Additional Loss Absorbency Requirement
The Saudi Arabian Monetary Agency issued this directive to implement regulatory reforms enhancing the resilience of Globally Systemically Important Financial Institutions and mitigating wider banking spillovers. The document outlines the Basel Committee’s assessment methodology for identifying these institutions and establishes an additional loss absorbency requirement that SAMA may apply to domestic systemically important banks in Saudi Arabia. Banks are instructed to access the full Basel paper from the Bank for International Settlements website and distribute it to relevant management personnel for compliance preparation.
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