Framework for Domestic Systemically Important Banks

,
Banki11g Supervision Dept.
From
To
Attention
Subject
Saudi Arabian Monetary Agency
All Banks
-351-000138356 : �JI
1435111 /1J.__: �)-:ill -...: ..::.l....ll.,.ii August2014 9041002962 Managing Directors, Chief Executive Officers and General Managers Domestic Systemically Important Banks(D.SIBs) Framework In order to identify and designate D·SIBs in Saudi Arabi� SAMA has developed the enclosed assessment methodology providing for an indicator-based measurement approach. This methodology takes into account the size, interconnectedness, substitutability and complexity of a bank while determining its systemic importance. The enclosed methodology will be implemented effective from 1 st January 2016. Accordingly, banks designated as O-SIBs will be required to meet additional Higher Loss Absorbency(HLA) capital requirements as prescribed in the enclosed methodology. Jf Deputy Governor for Supervision Encl: As above. P. 0. Box 2992 - Riyadh 11169, Saudi Arabia - Tel.: 0 1-463 3000 - Telex 404390 SJ - Fax 01 ·466 2119