Regulatory Alerts2021-12-13
Circular Re. Saudi Arabian Benchmark (SAIBOR/SAIBID)
The Saudi Central Bank (SAMA) issued Circular 43041880 to update the calculation methodology for the Saudi Arabian Interbank Offered Rate (SAIBOR) and the Saudi Arabian Interbank Offered Rate for Deposits (SAIBID), effective December 26, 2021. The directive mandates that contributing banks adopt a standardized waterfall methodology, implement strict governance and expert judgment procedures, and align their internal contracts and systems with the new regulatory standards. SAMA requires banks to submit monthly transaction reports and adhere to enhanced data keeping and reporting obligations to ensure the integrity and robustness of the benchmark.
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