Regulatory Alerts2017-09-17
Basel III - Standardized Approach for Measuring Counterparty Credit Risk Exposure
The Saudi Banking Supervision Department mandates that domestic banks review and incorporate the Basel III framework into their capital adequacy ratio calculations. Financial institutions must align their counterparty risk measurement methodologies with the Basel Committee standards available on the BIS website. This implementation ensures consistent capital buffers and strengthens systemic risk mitigation across Saudi financial markets.
. . . ·- . .:r-'cl e ,,,__ ... Saudi dt.a6ia.n /flonll.iat.q d-9il.ncq Ba11ki11g Supervision Dept. . J The Banks can access this BCBS document from BIS website: www.bis.org. Banks are expected to review and incorporate for calculating the CAR Ratio. Best-regards, Alwaleed Alsheikh Director of Banking Supervision P. 0. Box 2992 - Riyadh 11169, Saudi Arabia - Tel.: 01-463 3000 - Telex 404390 SJ - Fax 01-466 2119