Repo of Saudi Government Development Bonds, SAMA Bills, and Investment in SAMA Murabaha Transactions

Saudi Arabian Monetary Agency

BANKING CONTROL

مؤسسة النقد العربي السعودي

الرقم : 361000126265
التاريخ : 1436/09/21
المرفقات :

July 2015

From : Saudi Arabian Monetary Agency (SAMA)

To : All Banks

Attention : Managing Directors, Chief Executive Officers and General Managers

Subject : Repo of Saudi Government Development Bonds, SAMA Bills and Investment in SAMA Murabaha Transactions

Following a review of international markets and liquidity practices in the Basel peer group countries, SAMA has decided to revise the amount of repo facility available to Saudi Banks on their investments in Saudi Government Development Bonds and SAMA Bills. With effect from 31st July 2015, SAMA repo facility will stand at a maximum of 100% of nominal value of holdings in Government Development Bonds and SAMA Bills versus the current ruling of up to 75%.

For the Shariah Compliant banks that have a cash management account with SAMA in the form of Murabaha, such Murabaha transactions will be subject to a maximum of 100% repo facility versus the current ruling of 75%.

[Signature]
Osamah M. Shaker
Director General of Banking Control

P.O. Box 2992 - Riyadh-11169, Saudi Arabia - Tel : 011-463 3000 - Telex 404390 SJ - Fax : 011-463 2090