Chapter 2: General Provisions
Article 2
A financial institution shall be classified as SIFI pursuant to a decision by the competent authority based on criteria set thereby for institutions falling under its supervision, provided such criteria includes the size of the financial institution, interconnectedness and the complexity of its relations with local and foreign financial institutions, its modus operandi, and associated risks.
Article 3
The competent authority may take resolution procedures against any SIFI or its owners or creditors to achieve any of the following objectives:
1. Protect the financial system and the financial sector in the Kingdom, and avoid and limit the impact of substantial adverse effects on their stability.
2. Ensure the continuity of the critical activities of the SIFI under resolution.
3. Reduce dependence on government support by relying on the resources and revenues of the financial institution.
4. Protect deposits, client assets and funds, and rights arising from insurance policies.
5. Protect settlement systems and ensure their stability.
Article 4
This Law shall apply to financial institutions, holding companies, subsidiaries, foreign branches, and financial groups.
Article 5
The Implementing Regulations shall regulate the relationship between the Saudi Central Bank and the Capital Market Authority with regard to the implementation of the resolution procedures on a financial group the financial institutions of which are supervised by either the Saudi Central Bank or the Capital Market Authority.