Regulatory Alerts2018-02-08
SAMA Guidance on Basel III Net Stable Funding Ratio (NSFR) Based on BCBS October 2014
The Saudi Arabian Monetary Authority (SAMA) has updated its Net Stable Funding Ratio (NSFR) framework to align Saudi banking regulations with the October 2014 Basel Committee standards. The revised requirements mandate that all applicable banks maintain an NSFR of at least 100% on an ongoing basis by ensuring available stable funding adequately covers required funding across assets, liabilities, and off-balance sheet exposures. Effective January 2018 with quarterly reporting, the guidance provides detailed calculation methodologies for derivatives, encumbered assets, and secured financing to mitigate liquidity risk and reduce overreliance on short-term wholesale funding.
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