Regulatory Alerts2021-05-19
Providing Backup Generators in Branches and Transfer Centers
The Saudi Central Bank requires local banks and financial institutions to implement precautionary measures, including installing backup generators with verified capacity and conducting periodic maintenance, to ensure uninterrupted branch services during power outages. Banks must coordinate with the Saudi Electricity Company to prioritize their main and backup data centers and headquarters, while submitting an inventory of targeted branches and a corresponding implementation timeline within three months. This directive, effective January 1, 2022, aligns with existing business continuity regulations to mitigate disaster risks and maintain rapid service restoration without impacting customer operations.
Saudi Central Bank
Reference No.: 42069605 Date: 1442/10/07 Attachments: None
Circular
To Whom It May Concern, Peace be upon you, mercy of Allah and His blessings,
Subject: Providing Backup Generators in Branches and Transfer Centers.
In continuation of Saudi Central Bank Circular No. 381000058504 dated 1438/6/1H, which issued the Regulatory Guide for Business Continuity Management in the Banking Sector, and based on the Saudi Central Bank's supervisory and regulatory role in striving to maintain banking business continuity and mitigating potential risks of disasters and business interruptions faced by the banking sector.
We wish to inform you that local banks and financial institutions are required to establish necessary precautionary measures to ensure the continuity of branch services by providing alternative solutions and plans in case of power outages by the service provider. The Saudi Central Bank also expects continued diligent efforts to maintain banking business continuity based on each bank's/institution's assessment, ensuring service delivery to customers as required. This includes verifying the operational readiness of backup generators, their capacity, and conducting periodic tests and maintenance to ensure the generator's availability in case of power outages by the service provider. Furthermore, coordination with the Saudi Electricity Company is required to include main and backup data centers, as well as the bank's headquarters, in the priority list of the Company, and to explore possible options with the Company to provide full support and minimize the impact of scheduled and unscheduled power outages, ensuring a rapid return to operation without affecting banking services.
For information and action, effective from 2022/1/1G, and to provide the Saudi Central Bank within a maximum period of three months from its date with an inventory of branches to be equipped with backup generators, along with the dedicated timeline for this purpose, while confirming that it does not exceed the target date mentioned above.
Yours sincerely,
Fahd bin Ibrahim Al-Shathri Deputy Governor for Supervision
Distribution Scope:
- Local banks and financial institutions operating in the Kingdom.