Include U.S. Dollar-Denominated Government Bonds and Sukuk for Liquidity Ratio Calculation
| No: 391000002306 | Date(g): 28/9/2017 | Date(h): 8/1/1439 |
Translated Document
Referring to SAMA Circular No. 10348/M A/371 dated 15/08/1409 H regarding Inclusion of Banks' Investments in Local Development Bonds as a Component of Liquid Assets for calculating the liquidity ratio for banks as stipulated in paragraph two of Article Seven of the Banking Control Law issued by Royal Decree No. M/5 dated 22/02/1386 H concerning liquidity reserves and their components.
Recently, the Government of the Kingdom has issued dollar-denominated Sukuk bonds as part of its fiscal policy, which provides this type of investment option as high-quality liquid assets for banks. SAMA has decided to include this financial instrument in the calculation of the liquidity ratio as specified in the aforementioned paragraph of the Banking Control Law. Please note that these bonds and Sukuk do not qualify as financial instruments eligible for repurchase operations (Repo-Eligible).