Regulatory Alerts2025-08-24
The Technical Amendments to the Basel III Reforms
The Saudi Central Bank (SAMA) issued General Circular No. 4404714 to formally approve and implement technical amendments to the Basel III reforms across credit risk, operational risk, and Pillar 3 disclosure frameworks. The circular mandates revised capital calculation methodologies for specialized lending, operational risk internal loss models, and business indicators, while updating disclosure templates to replace risk-weighted assets with capital requirements and introduce new discount scalars for counterparty credit valuation adjustments. These changes standardize loss data identification, timing loss treatment, and leverage ratio exposures to ensure consistent regulatory compliance for all domestic and foreign banks operating in the Kingdom.