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  • Interest Rates on Assets and Liabilities Reporting Guidelines

    No: 420092840000 Date(g): 6/10/2020 | Date(h): 19/2/1442Status: In-Force

    With reference to SAMA Circular No. 391000006126 dated 18/01/1439 H and Circular No. 33788/67 dated 30/05/1440 H, which issued the Prudential Reporting Form for commissions on deposits, loans, bonds and other instruments.

    we would like to inform you that it has been decided to update the instructions and forms of the Return on Assets and Liabilities (attached) which cancel and replace the guidelines and forms issued under the two circulars referred to above. SAMA emphasizes the obligation of all banks to submit the report to SAMA on a quarterly basis and within thirty days from the end of each quarter, and to be certified by the Chief Financial Officer (CFO) of the bank.

    For your information, and to be implemented starting from the fourth quarter of 2020 G.

     

    • General

      The objective of these guidelines is to facilitate the preparation of the reports on Assets and Liabilities Interest Rates.

      These Guidelines shall supersede Saudi Arabian Monetary Authority (SAMA) Guidance note for Quarterly Prudential Returns on Loans and Deposits Commissions issued vide SAMA circular no. 33788/67 dated 30/05/1440H. The changes from the previous version are underlined.

    • Scope and Submission

      All banks operating in Saudi Arabia including foreign banks’ branches must submit the reports to SAMA quarterly within 30 calendar days following the quarter end. Reports should be completed at a domestic level only, and must be signed off by the Chief Finance Officer (CFO) before submission to SAMA.

      The report should be submitted in excel format via Email.

    • Reporting Guidance

      Banks should comply with the following in completing the report related to Assets and Liabilities interest rates:

      A.Assets and Liabilities Weighted Average (W.A) rates and balances should be submitted as following:
       
       •Template (1) - by Product:
       
        Categorization based on product type for example: loans, investments, placement with SAMA, bonds and deposits.
       
       •Template (2) - by Sector:
       
        Categorization based on the International Standard Industrial Classification (ISIC4).
       
       •Template (3) - by Type Sharia-compliant or Conventional:
       
        Categorization based on the bank’s classification of each product Sharia- compliant or conventional.
       
      B.Assets and liabilities W.A Rates , Balances and Maturity should be reported as follows:
       
       •W.A Rates:
       
        Include annual contractual rates on Assets and Liabilities outstanding at the end of the quarter.
       
       •Balances:
       
        Current Quarter Balance: Includes balance sheet exposure amount booked during the quarter and still outstanding at the quarter end.
       
        Outstanding Balance: Includes total outstanding balances at the end of the quarter including the current quarter balance.
       
       •Maturity:
       
        Includes contractual maturity used to populate the Current Quarter W.A rates and Outstanding W.A rates columns. The movement between buckets is not allowed.
       
       Banks should calculate the W.A rate as described in Annexure -1.
       
      C.All classifications of Assets and Liabilities are mutually exclusive.
       
      D.Benchmark rates must be included in the rate calculation based on booking value.
       
      E.For example: SAIBOR rate on booking date + 3% per annum.
       
      F.Local and Foreign Currency Balance amount should be reported/calculated in SAR 000's and W.A rates in percentage terms.
       
      G.All data for calculating the W.A rate should be related to M1 Domestic (Resident by Local and Foreign Currency) as described in Annexure- 2.
       

    • Reporting Categories

      • A. Assets: Accrued Rates Receivable.

        • 1. Loans to Governments and Quasi Government

           Loans to all Sovereign Governments and Quasi Government. An example guidance list in Annexure - 3.
           

        • 2. Loans to Financial Institutions (Excluding Banks)

           Loans to Insurance companies, Finance companies. Authorized Persons, Exchange companies and any other financial institution excluding Banks.
           

        • 3. Loans to Corporates

           3.1Public Non- Financial Corporates:
           
            Loans to commercial entities in which the Saudi Government or Entities Connected with Saudi Government owns (directly or indirectly) 50% or more of shareholdings. An example guidance list in Annexure - 3.
           
           3.2Large Corporates, 3.3 Medium, 3.4 Small and 3.5 Micro Enterprises:
           
            Defined as per SAMA circular No.381000064902 dated 16/06/1438 or any subsequent definition by SAMA.
           
           3.6Kafalah Guaranteed Loans:
           
            Loan to enterprises guaranteed by Kafalah fund and must be excluded from being reported in Medium, Small and Micro Enterprises rows.
           
           3.7Commercial Real Estate:
           
            Commercial mortgage or commercial real estate loan to finance a commercial real estate asset. These must be excluded from being reported in Large Corporates, Medium, Small and Micro Enterprises Loans rows.
           
           3.8Other Businesses:
           
            Includes any other loans not already classified in above categories.
           

        • 4. Retail Loans

           4.1Consumer Loans:
           
            Loans to individuals and households, granted on the following basis:
           
            •Granted by the creditor to a borrower as a secondary activity for the borrower, i.e. outside the scope of the borrower's principal commercial or professional activity. It would generally include personal loans, overdraft facilities, car loans, payment card loans, etc.
           
            •To finance purchase of goods and services for consumption and other such requirements of individuals as identified above e.g. to purchase furniture, household items, home improvement, vacations, education, etc.
           
           4.2Credit Cards:
           
            Outstanding credit card balances. W.A rate must reported based on contractual Annual Percentage Rate (APR) for this category.
           
           4.3Mortgages or Housing Loans:
           
            Mortgage or Housing loan to finance a real estate asset. These must be excluded from being reported in Consumer Loans rows.
           
           4.4Other Loans:
           
            Any other loan not already classified in above categories.
           

        • 5. Loans to Banks

           5.1Interbank Loans:
           
            Bank-to-bank loan placement in the Money Market only.
           
           5.2Vostro and Nostro Accounts:
           
            NOSTRO and VOSTRO accounts with debit balances.
           
           5.3Other banks Loans:
           
            Any other loan between banks not already classified in the above category such as secured loans between banks.
           

        • 6. Investments

           Investments in T-Bills (SAMA Bills and other T-bills), Bonds, fixed and floating rate securities issued by Government and quasi government, corporate, banks and other financial institutions and other counterparties.
           

        • 7. Placements with SAMA

           Reverse repo placements with SAMA.
           

      • B. Liabilities: Accrued Rates Payable.

        • 8. By Product Type

           8.1Demand Deposits:
           
            Represent non-special commission bearing customer deposits that have no maturity and can be withdrawn without prior notice. These deposits also include current accounts. If a bank does not pay any commission rate on the demand deposits, the balance should be calculated with 0% rate.
           
           8.2Saving Deposits:
           
            Represent non-checking special commission bearing customer deposits with no defined maturity.
           
           8.3Time Deposits:
           
            Represent special commissions bearing customer deposits with a defined maturity.
           
           8.4Other Deposits:
           
            Any other deposits not already classified in the above category such as Repos, Swaps transaction with SAMA and other.
           

        • 9. By Counterparties

           9.1 Deposits from Government and Quasi Government, 9.2 Deposits from SAMA, 9.3 Deposits from Financial Institutions (Excluding Banks), 9.4 Deposits from Corporates (excluding MSMEs), 9.5 Deposits from MSMEs and 9.6 Deposits from Retail customers:
           
            Total Deposits by Product Type (Total Balances and W.A rates) should equal to Total Deposits by Counterparties (Total Balances and W.A rates).
           

        • 10. Margin Deposits

           Including all deposits received in relation to transaction in exchanges.
           

        • 11. Bonds and Debt Securities:

          Issued by banks

        • 12. Deposits from Banks

           12.1Interbank deposits:
           
            Deposit received from other banks in the Money Market only.
           
           12.2Vostro and Nostro Accounts:
           
            NOSTRO and VOSTRO accounts with credit balances.
           
           12.3Other Deposits:
           
            Any other deposits between banks not already classified in the above category such as Repos.
           

    • Annexure - 1: Example of Calculating Weighted Average Rates

      Below is an example of computing the weighted average rate for a given period end balance amount of SAR 360 Million.

      123=(1*2)
      RatesBalance in 000’sRates multiplied by Balance
      0%30,000-
      1%50,000500
      2%60,0001,200
      4%80,0003,200
      5%90,0004,500
      8%20,0001,600
      10%30,0003,000
      Total360,00014,000
      WA Rates=(3/2)*100(14000/360000)*100
      Weighted Average Rate3.89%

    • Annexure - 2: Validation Table

      The Table explains each item on the interest rates report on assets and liabilities and its Match in M1. Also it indicates in which template each item would be reported.

       •Assets
       
      Item from Interest Rates on Assets reportM1 matchTemplate(1)Template(2)*Template(3)
      1. Loans to Governments & Quasi Government9. Credit Facilities (9.12, 9.22 and 9.32 Govt. & Quasi-Govt.) excluding public non-financial corporates√√√
      2. Loans to Financial Institutions (Excluding Banks)6. Due From Other Financial Institutions√√√
      3. Loans to Corporates9. Credit Facilities ( 9.11,9.21 and 9.31 Private) including Public non-financial corporates√√√
      4. Retail Loans9. Credit Facilities (9.11,9.21 and 9.31 Private)√√√
      5.Loans to Banks4. Due From Commercial Banks
      5. Due From Specialized Banks
      8. Due From OBU's      		√√√
      6. Investments10.1 Marketable Securities
      10.2 Govt. Bonds & Govt. Gteed Bonds
      10.312 Trading
      10.322 Investments      		√ √
      7. Placements with SAMA2.6 Others√ √
       
      Notes:
       
      * Assets on Template (2) should be allocated based on the sector.
       •Liabilities
       
      Item from Interest Rates on Liabilities reportM1 matchTemplate(1)Template(2)**Template(3)
      8. Total Deposits (By Product Type)15. Due to SAMA*
      21. Govt. & Quasi-Govt. Deposits and 22. Private Sector Deposits      		√√√
      9. Total Deposits (By Counterparties)15. Due to SAMA
      18. Due to Other Financial Institutions
      21. Govt. & Quasi-Govt. Deposits and 22. Private Sector Deposits      		√√√
      10. Margin Deposits23. Marginal Cash-Deposits√  
      11. Bonds/ debt securities Issued by Banks28. Subordinated Loans√ √
      12. Deposits from Banks16. Due to Commercial Banks
      17. Due to Specialized Banks
      20. Due To OBU’s      		√√√
       
      Notes:
       
      *Due to SAMA are not included in Template (2).

      ** Liabilities on Template (2) should be allocated based on the sector.

    • Annexure - 3: Examples of Governments and Quasi Government and Public Non-Financial Corporates

       •Governments and Quasi Government :
       
        -Government Universities
       
        -Ministries
       
        -Municipalities
       
        -Government Authorities
       
        -General Organization for Social Insurance (GOSI)
       
        -Social Development Bank
       
        -Public Investment Fund (PIF)
       
       •Public Non- Financial Corporates:
       
        -SABIC- Saudi Arabian Basic Industries
       
        -Saudi Arabian Airlines
       
        -Saudi Arabian Minings (Ma'aden)
       
        -Saudi Electricity Corporations
       
        -Saudi Telecom Company
       

      Central Bank 

      INTEREST RATES ON ASSETS AND LIABILITIES (V3)

      By Product

       Current Quarter WA ratesTotal current amount on Balance Sheet (SAR 000‘s)Outstanding WA RatesTotal outstanding amount on Balance Sheet (SAR 000‘s)
       Local CurrencyForeign CurrencyTotalLocal CurrencyForeign CurrencyTotalLocal CurrencyForeign CurrencyTotalLocal CurrencyForeign CurrencyTotal
      Assets
      1. Loans to Governments & Quasi Government     -     -
        
      2. Loans to Financial Institutions (Excluding Banks)     -     -
        
      3. Loans to Corporates   ---   ---
      3.1 Public Non Financial Corporates     -     -
      3.2 Large Corporates     -     -
      3.3 Medium Enterprises     -     -
      3.4 Small Enterprises     -     -
      3.5 Micro Enterprises     -     -
      3.6 Kafalah Guaranteed Loans     -     -
      3.7 Commercial real estate     -     -
      3.8 Other Businesses     -     -
        
      4. Retail Loans   ---   ---
      4.1 Consumer Loans     -     -
      4.2 Credit Cards     -     -
      4.3 Mortgages or Housing loans     -     -
      4.4 Other Loans     -     -
        
      5.Loans to Banks   ---   ---
      5.1 Inter Bank Loans   ---   ---
      5.1.1 Overnight     -     -
      5.1.2 Upto 1 week     -     -
      5.1.3 week to 1 month     -     -
      5.1.4 1 month to 3 months     -     -
      5.1.5 3 months to 6 months     -     -
      5.1.6 6 months to 12 months     -     -
      5.1.7 Over 1 year     -     -
      5.2 Vostro and Nostro Accounts     -     -
      5.3 Other Banks loans     -     -
        
      6. Investments   ---   ---
      6.1 Tbills   ---   ---
      6.1.1 SAMA Bills     -     -
      6.1.2 Other Bills     -     -
      6.2 Government bonds and Govt guaranteed bonds     -     -
      6.3 Non Government bonds     -     -
        
      7. Placements with SAMA     -     -
        
      Liabilities
      8. Total Deposits (By Product Type)   ---   ---
      8.1 Demand Deposits (including Shariah compliant)     -     -
      8.2 Savings Deposits (including Shariah compliant)     -     -
      8.3 Time Deposits (including Shanah compliant)   ---   ---
      8.3.1 Less than 1 month     -     -
      8.3.2 1 - 3 months     -     -
      8.3.3 3 - 6 months     -     -
      8.3.4        6 - 12 months     -     -
      8.3.5        1 year - 2 years     -     -
      8.3.6        2 years - 3 years     -     -
      8.3.7 Over 3 years     -     -
      8.4 Other Deposits     -     -
        
      9. Total Deposits (By Counterparties)   ---   ---
      9.1 Deposits from Government & Quasi Government     -     -
      9.2 Deposits from SAMA     -     -
      9.3 Deposits from Financial Institutions (excluding Banks)     -     -
      9.4 Deposits from Corporates (excluding MSMEs)     -     -
      9.5 Deposits from MSMEs     -     -
      9.6 Deposits from Retail customers     -     -
        
      10. Margin deposits     -     -
        
      11. Bonds/ Debt securities   ---     -
      11.1 Less than 1 year     -     -
      11.2 1-5 years     -     -
      11.3 Over 5 years     -     -
        
      12. Deposits from Banks   ---   ---
      12.1 Inter Bank Deposits   ---   ---
      12.1 Overnight     -     -
      12.2 Upto 1 week     -     -
      12.3 1 week to 1 month     -     -
      12.4 1 month to 3 months     -     -
      12.5 3 months to 6 months     -     -
      12.6 6 months to 12 months     -     -
      12.7 Over 1 year     -     -
      12.2 Vostro and Nostro Accounts     -     -
      12.3 Other Deposits     -     -
       
      * Weighted Average

      Central Bank 

      INTEREST RATES ON ASSETS AND LIABILITIES (V3)

      By Sector

      SectorsCurrent Quarter WA ratesTotal current amount on Balance Sheet (SAR 000‘s)Outstanding WA RatesTotal outstanding amount on Balance Sheet (SAR 000‘s)
      Local CurrencyForeign CurrencyTotalLocal CurrencyForeign CurrencyTotalLocal CurrencyForeign CurrencyTotalLocal CurrencyForeign CurrencyTotal
      Assets
      1. Agriculture, forestry and Fishing     -     -
      2. Mining and Quarrying     -     -
      3. Manufacturing     -     -
      4. Electricity, gas, steam and air conditioning supply     -     -
      5. Water supply, sewerage, waste management and remediation activities     -     -
      6. Construction     -     -
      7. Wholesale and retail trade, repair of motor vehicles and motorcycles     -     -
      8. Transportation and storage     -     -
      9. Accommodation and food service activities     -     -
      10. Information and communication     -     -
      11. Financial and insurance activities     -     -
      12. Real estate activities     -     -
      13. Professional, scientific and technical activities     -     -
      14. Administrative and support service activities     -     -
      15. Public administration and defense, compulsory social security     -     -
      16. Education     -     -
      17. Human health and social work activities     -     -
      18. Arts, entertainment and recreation     -     -
      19. Activities of extraterritorial organizations and bodies     -     -
      20. Household (Personal)     -     -
      21. Other Activities     -     -
      Liabilities
      1. Agriculture, forestry and Fishing     -     -
      2. Mining and Quarrying     -     -
      3. Manufacturing     -     -
      4. Electricity, gas. steam and air conditioning supply     -     -
      5. Water supply, sewerage, waste management and remediation activities     -     -
      6. Construction     -     -
      7. Wholesale and retail trade, repair of motor vehicles and motorcycles     -     -
      8. Transportation and storage     -     -
      9. Accommodation and food service activities     -     -
      10. Information and communication     -     -
      11. Financial and insurance activities     -     -
      12. Real estate activities     -     -
      13. Professional, scientific and technical activities     -     -
      14. Administrative and support service activities     -     -
      15. Public administration and defense, compulsory social security     -     -
      16. Education     -     -
      17. Human health and social work activities     -     -
      18. Arts, entertainment and recreation     -     -
      19. Activities of extraterritorial organizations and bodies     -     -
      20. Household (Personal)     -     -
      21. Other Activities     -     -

      Central Bank 

      INTEREST RATES ON ASSETS AND LIABILITIES (V3)

      By Type

       Current Quarter WA ratesTotal current amount on Balance Sheet (SAR 000‘s)Outstanding WA RatesTotal outstanding amount on Balance Sheet (SAR 000‘s)
       Local CurrencyForeign CurrencyTotalLocal CurrencyForeign CurrencyTotalLocal CurrencyForeign CurrencyTotalLocal CurrencyForeign CurrencyTotal
      Assets
      Loans to Governments & Quasi Government   ---   ---
      Sharia-compliant     -     -
      Conventional     -     -
       
      2. Loans to Financial Institutions (Excluding Banks)   ---   ---
      Sharia-compliant     -     -
      Conventional     -     -
       
      3. Loans to Corporates   ---   ---
      Sharia-compliant     -     -
      Conventional     -     -
       
      4. Retail Loans   ---   ---
      Sharia-compliant     -     -
      Conventional     -     -
       
      5. Loans to Banks   ---   ---
      Sharia-compliant     -     -
      Conventional     -     -
       
      6. Investments   ---   ---
      Sharia-compliant     -     -
      Conventional     -     -
       
      7. Placements with SAMA   ---   ---
      Sharia-compliant     -     -
      Conventional     -     -
       
      Liabilities
      8. Total Deposits (By Type)   ---   ---
      Demand Deposits   ---   ---
      Sharia-compliant     -     -
      Conventional     -     -
      Savings Deposits   ---   ---
      Sharia-compliant     -     -
      Conventional     -     -
      Time Deposits   ---   ---
      Sharia-compliant     -     -
      Conventional     -     -
      Other Deposits   ---   ---
      Sharia-compliant     -     -
      Conventional     -     -
       
      9. Bonds/ debt securities Issued by Banks   ---   ---
      Sharia-compliant     -     -
      Conventional     -     -
       
      10. Bank Deposits   ---   ---
      Sharia-compliant     -     -
      Conventional     -     -