SAMA Directive on Basel III Revised Framework for Resilient Banks

«i,aubi �rabtan ;fflonetarp �gencp �H<1uG97514 Banking Supervision Dept. From Saudi Arabian Monetary Agency To All Banks "-... '<:;' : � � )1 !Z 111 /2011 rJAVffj Ber, f VAA o Attention : Managing Directors, Chief Executive Officers and General Managers Subject Basel Committee's Revised Document of June 2011 Entitled "Basel III: Global Framework for More Resilient Banks and Banking Systems" As you are aware, in December 2010, the Basel Committee on Banking Supervision issued its initial rules entitled "Basel III: Global Framework for More Resilient Banks and Banking System". This text presented the details of global regulatory standards on Banks' Capital Adequacy and Liquidity. The Committee has now published its Revised Document of June 2011, which can be accessed from BIS website www.bis.org. The major changes in the Revised Document are covered in the attached BCBS Press Release and generally relate to further refinements to Credit Value Adjustments (CVA). This document is of interest to all banks in Saudi Arabia that have currently implemented the Basel II Framework and are now preparing to move on to Basel III. Banks are expected to review these documents and start developing their plans for implementation ofBasel III. Banks should study these carefully and become familiar with the rules text. Over the next few months, SAMA will be issuing specific guidance documents to banks on these subjects including SAMA's position in areas where national discretion is to be applied. SAMA will also issue revised or new prudential returns related to these topics. ..., f!,Y. \ Abdulrahman A. Al-Kalaf Deputy Governor for Technical Affairs P. 0. Box 2992 - Riyadh 11169, Saudi Arabia -Tel.: 01-463 3000 -Telex 404390 SJ - Fax 01-466 2119