These rules shall be applicable to the following institutions: 
  i. All locally incorporated banks licensed and operating in the Kingdom of Saudi Arabia
  ii. All foreign branches and subsidiaries of locally incorporated banks operating outside the Kingdom of Saudi Arabia.
  iii. All foreign banks operating in the Kingdom of Saudi Arabia.
  While applying the rules to their subsidiaries and branches, the banks shall also take into account the legal and regulatory requirements of the concerned regulatory authorities. 
  These rules do not apply to Foreign Bank Branches that are subject to consolidated supervision by their home country supervisors in respect of credit concentrations and large exposure limits unless specifically stated. However, all foreign bank branches must detail their large exposure and risk concentration policies as well as the relevant high-level controls, and report their 50 largest exposures as per reporting requirements under Section 7 of these Rules. As part of its prudential oversight of the Kingdom of Saudi Arabia operations of a foreign bank branch, SAMA may discuss with the foreign bank branch's parent and home supervisor any undue credit risk concentrations associated with the foreign bank branch's Kingdom of Saudi Arabia operations. 
  These rules shall be applicable on a consolidated as well as standalone basis. They apply at the same level as the risk-based capital requirements are required to be applied as per SAMA's Detailed Guidance Document relating to Pillar 1, June 2006,³ i.e. at every tier within a banking group. While applying the rules at a consolidated level, a bank must consider all exposures to third parties across the relevant regulatory consolidation group and compare the aggregate of those exposures with the group's eligible capital base. 
  

³ See "Basel II - SAMA’s Detailed Guidance Document relating to Pillar 1, June 2006"

A bank must consider exposures to any counterparty to comply with the exposure limits unless a specific exemption to any exposure is granted under these Rules.