Regulatory Alerts2011-11-20
The Joint Forum Report on Asset Securitization
The Saudi Arabian Monetary Agency directs all domestic banks to access, distribute, and actively monitor the Joint Forum’s guidance on asset securitization. This directive addresses market incentives for originators, arrangers, and investors while emphasizing regulatory reforms necessary to sustain responsible securitization practices. Banks must ensure relevant management personnel apply these concepts to their ongoing activities and track compliance with the recommended standards.
I �aubi �rabian :f[flonctarp �gcncp Banking Supervision Dept. ZO November 2011 From Saudi Arabian Monetary Agency To All Banks Attention Managing Directors, Chief Executive Officers and General Managers Subject The Joint Forum Report on Asset Securitization In July 2011, the Joint Forum issued a paper entitled "Report on Asset Securitization". The Joint Forum consists of the following international regulatory and supervisory organizations. ■ Basel Committee on Banking Supervision ■ International Organization of Securities Commissions ■ International Association on Insurance Supervisors This document relates to banks' asset securitization activities including the incentives which had greatly impacted the participation in this market by the originators, arrangers and investors and the regulatory reforms necessary to ensure a sustainable and responsible securitization market. The Agency is issuing this document for information purposes only forthe benefit of the relevant managers in Saudi banks undertaking such activities. We suggest that Banks should access these papers from Bank for International Settlements website: (http://www.bis.org). Further, the Banks should distribute these papers to their relevant managers and monitor the use of the ideas, concept and guidance contained therein. . Dr. Abdulrahman AI-Hamidy Vice Governor P. 0. Box 2992 - Riyadh 11169, Saudi Arabia - Tel.: 0 1-463 3000 - Telex 404390 SJ - Fax 0 1-466 2119