Regulatory Alerts2012-12-29
SAMA Final Guidance Documents on Basel III Pillar 3 Implementation
The Saudi Arabian Monetary Agency has issued final guidance documents and reporting templates to implement Basel III Pillar 3 disclosure requirements for all banks. Effective 30 June 2013, these quantitative and qualitative templates supersede prior Basel II reporting formats while maintaining existing guidance notes, with a delayed rollout for the Internal Models Approach pending further Basel Committee decisions. Institutions must submit their first quarterly disclosure by 30 October 2013, adhering to a reporting schedule that varies between quarterly, semi-annual, and annual frequencies based on specific template requirements.
SauJi d-ta6ian _/tlonetattf dBanking Supervision Dept. C, From To Attention Subject Saudi Arabian Monetary Agency All Banks 341000019984 :i---9� 1434/02/16 : �L-.:ill : .::.WS..,..JJ Managing Directors, Chief Executive Officers and General Managers SAMA's Final Guidance Documents Concerning Implementation of Basel Ill Pillar 3 component Earlier, SAMA has implemented BCBS Pillar 3 Disclosure requirements under both Basel II in May 2007 and Basel 11.5 in October 2012 respectively. Now, with the implementation of Basel Ill Framework on Capital Reforms though its Circular# 15689 dated 1434/02/06 (Hijri), SAMA is also issuing these Pillar 3 requirement's i) Guidance Notes and ii) Reporting Templates. This package includes quantitative and qualitative requirements to be implemented effective 30 June 2013 for the Standardized and IRB Approaches. SAMA's Basel Ill Pillar 3 requirement are based on its circular# BCS 12184 dated 23 July 2012 concerning Basel Ill entitled "Basel Committee - Final Rules on Bank Disclosures of the composition of capital", which calls for an incremental approach where new additional Templates include Basel 11.5 and Basel Ill for only Regulatory capital, while all other templates remain unchanged under Basel II. Consequently, SAMA Basel II Templates are now superseded by the Basel Ill Pillar 3 Templates. However, the Guidance Notes for Pillar 3 under Basel II and 11.5 remain relevant and valid. SAMA has delayed the implementation of Models approach for Market Risk in the context of Basel 11.5 and Basel Ill as it has decided to wait until further progress is made on Trading Book issues currently under review by the BCBS. Consequently, all SAMA Basel Ill Pillar 3 disclosure Templates concerning Internal Models Approach can only be completed at the time SAMA implements the models approach for Market Risk. The frequency of reporting is based on a quarterly, six monthly and annual basis contingent on the specific disclosures template as described in the attached package. As SAMA's Basel Ill Pillar 3 disclosures are effective 30 June 2013, the first set of Quarterly Disclosures will be for data as of 30 September 2013 due in SAMA not later than 30 days i.e. 30 th October 2013. In the meantime, the Basel II disclosures will continue up to 30 June 2013. �17 .,,,.. Abdulrahman A. Al-Kalaf Deputy Governor for Technical Affairs t-· P. 0. Box 2992 - Riyadh 11169, Saudi Arabia -Tel.: 01-463 3000 -Telex 404390 SJ - Fax 01-466 2119