Step-in Risk

In the Name of Allah, the Most Gracious, the Most Merciful

Saudi Central Bank
Headquarters

Banking Policy Department

Reference No.:
Date: 1439/02/12
Attachments:

Ref No.: 391000016551

Circular

To: The Esteemed,
Greetings,

Subject: Management and Measurement of Step-in Risk.

With reference to the Bank's Circular No. 381000084993 dated 1438/08/13H, which requested the Bank's comments and views regarding the Consultative Document issued by the Basel Committee on Banking Supervision (BCBS) on the Guidelines for Management and Measurement of Step-in Risk to enhance supervision and regulation of the Shadow Banking system and mitigate potential systemic risks associated with it.

We wish to inform you that the Guidelines for Management and Measurement of Step-in Risk have been issued in their final form. These guidelines aim to enhance the effectiveness of managing and measuring Step-in Risk, reduce its impact on bank capital and liquidity levels, ensure consistency in practices across countries, while taking into account the nature of these risks.

The Bank emphasizes the importance of compliance by banks and financial institutions with the Guidelines for Management and Measurement of Step-in Risk issued by the Basel Committee on Banking Supervision (http://www.bis.org/bcbs/publ/d423.pdf).

Yours sincerely,

Sulaiman bin Rashid Al-Jabr
Acting Director, Banking Policy Department

Distribution Scope:
All banks operating in the Kingdom

P.O. Box 2992, Riyadh 11169 | Telex: MARKAZI | Fax: 404400 | Tel: 4633000 | Fax: 4662414