Regulatory Alerts2017-09-20
Net Stable Funding Ratio Disclosure Standards
The Saudi Arabian Monetary Agency mandates that all domestic banks calculate and disclose their Net Stable Funding Ratio (NSFR) using a standardized template to ensure a minimum ratio of 100 percent. This requirement, effective for reporting periods beginning after January 1, 2018, incorporates both quantitative measures of stable funding sources and uses alongside qualitative risk management criteria. By aligning with Basel Committee on Banking Supervision guidelines, the standardized disclosures will enhance regulatory transparency, reinforce liquidity risk oversight, and strengthen market discipline.
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