Your access and use of SAMA Regulatory Rulebook and its content is considered as an acceptance and approval of commitment by you without any limitation or condition to the following:
SAMA Regulatory Rulebook is a platform that aims to assist the regulated entities to access SAMA regulatory content adeptly and efficiently.
SAMA Regulatory Rulebook is still on its development and soft launch stage. SAMA is not liable for its contents and does not warrant or represent that (the Services related to the platform, information or material presented in the platform) is displayed free of any inaccuracies, omissions, or errors (“Faults”). SAMA accepts no liability for any loss, claim or damage resulting from any use of the platform, and any decisions made, or actions taken based on the information contained in or generated by the platform.
SAMA Regulatory Rulebook has no legal effect and it does not aim to amend or revoke any legal provisions. The Rulebook still Contains some documents under review, including translated versions. Therefore, SAMA Regulatory content circulated through SAMA official channels remains in force.
Without prejudice to the terms of use of SAMA website Hereby, you acknowledge that any illegal, unauthorized use and/or any breach of any of these provisions may result in legal actions against you.
Banks should put in place an effective credit monitoring system that enables them to monitor the quality of individual credit exposures as well as the overall credit portfolio and determine the adequacy of provisions. The monitoring system should also enable the bank to take remedial measures as and when any deterioration occurs in individual credits or the overall portfolio. An effective system of credit monitoring should ensure that:
a.
the current financial condition of the borrower is fully understood and assessed by the bank;
b.
the overall risk profile of the borrower is within the risk tolerance limits established by the bank;
c.
all credits are in compliance with the applicable terms & conditions and regulatory requirements;
d.
usage of approved credit lines by borrowers is monitored by the bank;
e.
the projected cash flow of major credits meet debt servicing requirements;
f.
collateral held by the bank provides adequate coverage;
g.
all loans are being serviced as per facility terms & conditions;
h.
potential problem credits are identified and classified on a timely basis;
i.
provisions held by the bank against non-performing loans are adequate;
The banks’ credit policy should explicitly provide procedural guidelines relating to credit risk monitoring covering, inter alia, the following points:
a.
The roles and responsibilities of individuals responsible for credit risk monitoring;
b.
The assessment procedures and analysis techniques (for individual loans & overall portfolio). This may include, inter alia, the assessment procedures for assessing the financial position and business conditions of the borrower, monitoring his account activity/conduct, monitoring adherence to loan covenants and valuation of collaterals;
c.
The frequency of monitoring;
d.
The periodic examination of collaterals and loan covenants;
e.
The frequency of site visits;
f.
Renewal of existing loans and the circumstances under which renewal may be deferred;
g.
Restructuring or rescheduling of loans and other credit facilities;
h.
The identification of any deterioration in any loan and follow-up actions to be taken.
