Chapter Eleven Exposure Limits
Article 61
Exposure includes the value of all assets that subject to any credit risks, including but not limited to, finance agreements; securities; and advanced payments to other entities and clients; all commitments or other obligations to grant finance or to make a payment or deliver assets to a third party with a right of recourse against a client or another third party, equity, participating interests and assets in respect of which the Consumer Microfinance Company is the lessor.
Article 62
A Consumer Microfinance Company shall assess and rate risks related to each exposure before making any finance decision and review the risk rating at least once every two years.
Article 63
1. The aggregate finance amount provided by a Consumer Microfinance Company shall not exceed double the company’s amount of capital and reserves unless a non-objection letter from SAMA is obtained.
2. SAMA may increase the limit on the aggregate finance amount offered by a Consumer Microfinance Company to the extent it deems appropriate, taking into account the financial position of the company, its performance and the market conditions.