Featured Product

    BCBS Assesses Implementation of NSFR and LE Framework in Saudi Arabia

    September 27, 2018

    BCBS published two reports assessing the implementation of the net stable funding ratio (NSFR) and the large exposures (LE) framework in the Kingdom of Saudi Arabia. These reports are a part of the Regulatory Consistency Assessment Program (RCAP) of the Basel Committee. Overall, the NSFR regulations and the LE framework in the Kingdom of Saudi Arabia have been found to be "compliant" with the Basel standards. This is the highest of the four possible assessment grades.

    BCBS has completed the assessments of implementation of Basel III capital and liquidity coverage ratio regulations for all the member jurisdictions. Assessments of implementation of Basel III standards related to the NSFR and large exposures framework started in 2018 and are expected to be completed by September 2020. SAMA had implemented NSFR as a minimum standard as of January 01, 2016. SAMA also implemented the large exposures framework as a minimum standard on January 01, 2016, which is three years ahead of the implementation date provided in the Basel standard. In Saudi Arabia, both regulations are applicable to all 12 locally incorporated banks on a consolidated basis.

    The large exposure limits help constrain the maximum loss a bank could face in the event of a sudden failure of a counterparty or a group of connected counterparties and help ensure the bank remains a going concern. NSFR, which is a significant component of the Basel III reforms, requires banks to maintain a stable funding profile in relation to their on- and off-balance sheet activities, thus reducing the likelihood that disruptions to a bank's regular sources of funding will erode its liquidity position in a way that could increase the risk of its failure. NSFR standard of BCBS became a minimum standard by January 01, 2018.


    Related Links

    Keywords: Middle East and Africa, Saudi Arabia, Banking, Basel III, RCAP, Large Exposures, NSFR, BCBS

    Featured Experts
    Related Articles
    News

    EBA Analyzes Impact of Unwind Mechanism of Liquidity Coverage Ratio

    EBA published a report analyzing the impact of the unwind mechanism of the liquidity coverage ratio (LCR) for a sample of European banks over a three-year period, from the end of 2016 to the first quarter of 2020.

    November 19, 2020 WebPage Regulatory News
    News

    ECB Outlines Views on Possible Changes to AnaCredit Rule and TLTROs

    In response to questions from a member of the European Parliament, the ECB President Christine Lagarde issued a letter clarifying the possibility of amending the AnaCredit Regulation and making targeted longer-term refinancing operations (TLTROs) dependent on the climate-related impact of bank loans.

    November 19, 2020 WebPage Regulatory News
    News

    IASB Begins First Phase of Post-Implementation Review of IFRS 9

    IASB started the post-implementation review of the classification and measurement requirements in IFRS 9 on financial instruments and added the review as a project to its work plan.

    November 18, 2020 WebPage Regulatory News
    News

    FSB Report Examines Progress in Resolvability of Systemic Institutions

    FSB published a report that examines progress in implementing policy measures to enhance the resolvability of systemically important financial institutions.

    November 18, 2020 WebPage Regulatory News
    News

    EBA Benchmarks National Insolvency Frameworks Across EU

    EBA published a report on the benchmarking of national loan enforcement frameworks across 27 EU member states, in response to the call for advice from EC.

    November 18, 2020 WebPage Regulatory News
    News

    FSB Reports Assess Impact of Pandemic on Financial Stability

    FSB published a letter from its Chair Randal K. Quarles, along with two reports exploring various aspects of the market turmoil resulting from the COVID-19 event.

    November 17, 2020 WebPage Regulatory News
    News

    RBNZ Consults on Implementation of Capital Review Changes

    RBNZ launched a consultation on the details for implementing the final Capital Review decisions announced in December 2019.

    November 17, 2020 WebPage Regulatory News
    News

    IASB Announces Andreas Barckow as the New Chair from July 2021

    The Trustees of the IFRS Foundation, which are responsible for the governance and oversight of IASB, have announced the appointment of Dr. Andreas Barckow as the IASB Chair, effective July 2021.

    November 17, 2020 WebPage Regulatory News
    News

    HKMA Consults on Capital Rules for Bank Equity Investments in Funds

    HKMA issued a letter to consult the banking industry on a full set of proposed draft amendments to the Banking (Capital) Rules for implementing the Basel standard on capital requirements for banks’ equity investments in funds in Hong Kong.

    November 17, 2020 WebPage Regulatory News
    News

    ESRB Supports Extension of Macro-Prudential Measure by Swedish FSA

    ESRB published an opinion assessing the decision of Swedish Financial Supervisory Authority (FSA) to extend the application period of a stricter measure for residential mortgage lending, in accordance with Article 458 of the Capital Requirements Regulation (CRR).

    November 17, 2020 WebPage Regulatory News
    RESULTS 1 - 10 OF 6153