2017-09-13
The Saudi Arabian Monetary Agency directs all banks to review and incorporate the Basel Committee on Banking Supervision’s principles for effective risk data aggregation and reporting into their internal capital planning frameworks. Initially targeting systemically important banks, the framework mandates compliance for global systemically important banks by January 2016 and recommends domestic counterparts adhere within three years of designation. These requirements strengthen risk management, enhance rapid data provision by legal entity and business line, and ultimately improve institutional decision-making and resolvability.
Ba11killg Supervisio11 Dept. 351000052427 : ,.J;ll .. 1��5/04/24 : �L....l!I . : .:.Ul.,.ii / - ' From Saudi Arabian Monetary Agency CC H.E. Abdulaziz AI-Helaissi, Deputy Governor for Supervision To All Banks Attention : Managing Directors, Chief Executive Officers and General Managers Subject Basel Committee on Banking Supervision Document regarding Progress in adopting the principles for Effective Risk Data Aggregation and Risk Reporting "-> The Principles for effective risk data aggregation and risk reporting (the Principles) were issued by the Basel Committee on Banking Supervision (the Basel Committee) in January 2013. The Principles aim to strengthen risk data aggregation and risk reporting practices at banks to improve risk management practices. In addition, improving banks' ability to rapidly provide comprehensive risk data by legal entity and business line will enhance banks' decision-making processes and improve their resolvability. The Principles are initially addressed to systemically important banks (SIBs) and apply not only at the group level but also to all material business units or entities within the group. National supervisors may nevertheless choose to apply the Principles to a wider range of banks. The Basel Committee and the Financial Stability Board (FSB) expect banks identified as global systemically important banks (G-SIBs) to comply with the Principles by 1 January 2016.2 In addition, the Basel Committee strongly suggests that national supervisors also apply the Principles to banks identified as domestic systemically important banks (D-SIBs) three years after their designation as such by their national supervisors. The Banks can access this BCBS document from BIS website: www.bis.org where they are expected to review it and incorporate it where relevant in their own internal capital planning framework. Best regards, Alwaleed Alsheikh Director of Banking Supervision P. O. Box 2992 - Riyadh 11169, Saudi Arabia - Tel.: 01-463 3000 - Telex 404390 SJ - Fax 01-466 2119