Implementation of Monitoring Tools in Conjunction with Amended LCR

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Banking Supervision Dept. 351QQQ147086 : r-----')1 1435/12/01 : (!;;L ...... �ll : .:.Ul .,..JI From To Attention Subject 24 September 2014 Saudi Arabian Monetary Agency All Banks General Managers, Managing Directors and Chief Executive Officers SAMA's Implementation of Monitoring Tools in Conjunction with the Amended LCR You are aware that SAMA issued through its Circular# 341000107020 dated 10 July 2013 its implementation document concerning the Amended LCR for Banks. In addition to the LCR which is the main BCBS regulatory standard concerning liquidity, this Circular refers to the "Monitoring Tools" to capture additional information relating to banks cash flows, balance sheet structures, available unencumbered collateral and certain market indicators. These metrics, together with the LCR Standard, provide the cornerstone of information that will aid SAMA in assessing the liquidity risk of a bank. Consequently, by utilizing these metrics on a timely basis, supervisory actions can be taken when potential liquidity difficulties are signaled. The attached metrics as identified below are to be used as monitoring tools to aid SAMA in assessing the liquidity risk of banks.

1. Contractual Maturity Mismatch
2. Concentration of funding
3. Available unencumbered assets
4. LCR by significant currency
   These reporting Templates will be sent to SAMA on a monthly basis. All required reporting under this circular should be undertaken within 30 days of the relevant period end. The effective date of their reporting template is 1 st January 2015 and the first return will be as of 31 January 2015. In order to obtain a further understanding of the underlying BCBS document, banks should access from BIS website: www.bis.org. Best regards, ,, Alwaleed Alsheikh Director of Banking Supervision 11 • P. 0. Box 2992 - Riyadh 11169, Saudi Arabia - Tel.: 01-463 3000 - Telex 404390 SJ - Fax 01-466 2119