Regulatory Alerts2019-09-24
Regulations for Foreign Banks Branches (FBB)
The Saudi Arabian Monetary Authority (SAMA) issues comprehensive regulations mandating robust corporate governance, clear senior management accountability, and independent compliance functions for all foreign bank branches operating in Saudi Arabia. The framework establishes specific prudential requirements, including funding ratio calculations, liquidity coverage and stable funding ratios, stress testing, and large exposure limits, tailored to branches conducting significant retail or systemically important wholesale activities. Wholesale-only branches exceeding an indicative SAR 10 billion asset threshold or providing critical economic functions face additional systemic importance designations and enhanced risk oversight mandates.
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