Regulatory Alerts2016-08-02
Revisions to the Securitisation Framework
The Saudi Arabian Monetary Agency requires domestic banks to implement updated regulatory capital treatment for securitisation exposures by aligning with the Basel Committee on Banking Supervision's revised standards. The circular introduces expanded criteria for Simple, Transparent and Comparable securitisations, excludes high-risk underlying assets from preferential treatment, and reduces the senior exposure risk weight floor from 15 percent to 10 percent. Banks must review the referenced Basel document and apply these capital adjustments immediately upon issuance to ensure full compliance with the revised framework.
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