The Mandatory Requirement of Using Qawaem Program Before Providing Credit Facilities to Commercial Entities

In the Name of Allah, the Most Gracious, the Most Merciful Saudi Central Bank (SAMA) Headquarters

Banking Policy Department

No.: 60596/67
Date: 1440/10/09 AH
Attachments: None

Circular

To the Esteemed,
Peace, mercy, and blessings of Allah be upon you,

Subject: The Mandatory Requirement of Using the Qawaem Program Before Providing Credit Facilities to Commercial Entities.

In continuation of the Bank's instructions issued pursuant to Circular No. 2391 000000 371 dated 1437/1/7 AH, regarding encouraging banks and financial institutions operating in the Kingdom to utilize the "Qawaem" program and rely solely on reliable financial statements available in this program, which aims to improve and increase operational efficiency, leverage deposited financial statements, enhance the credibility and reliability of accounting information, and raise the transparency level for commercial entities.

And in light of the program's contribution to improving the quality and reliability of accounting information, which constitutes one of the primary sources for assessing credit risk for commercial entities, the Bank confirms that all banks and financial institutions operating in the Kingdom must use the "Qawaem" program as a source for obtaining financial statements of commercial entities obligated to deposit them in the program, before providing any credit facilities or during the periodic review process for assessing credit risk.

For information and action, effective as of 2019/8/16 CE.

Yours sincerely,

Fahd bin Ibrahim Al-Shathri
Deputy Governor for Supervision

Distribution Scope:

• Banks and financial institutions operating in the Kingdom
• Credit information companies

P.O. Box 2992, Riyadh 11169 | Telegram Address: MARKAZI | Telex: 404400 | Tel: 4632000 | Fax: 4662414