1.2 Wholesale Activities
Effective from Sep 24 2019 - Dec 31 2019
To view other versions open the versions tab on the right
| 7. | SAMA has additional requirements where wholesale only foreign bank branches are systemically important. Wholesale only foreign bank branches are those that are not engaged in significant retail activities as defined in 6 above. |
| 8. | In assessing whether a branch is systemically important, SAMA looks at whether the overall KSA footprint of the branch exceeds an average of SAR 10 billion total gross assets. The SAR 10 billion threshold is only indicative and SAMA will also take into account the scale of provision of Critical Economic Functions (CEFs) the branch undertakes in KSA. |
| 9. | For the purpose of these regulations, CEFs are defined as activities, services or operations the discontinuance of which is likely to lead to the disruption of services that are essential to the real economy due to the size, market share, external and internal interconnectedness, complexity or crossborder activities of the FBB, with particular regard to the substitutability of those activities, services or operations. |
| 10. | Wholesale only FBBs will be considered as being systemically important if they undertake the CEFs under A and B below. SAMA may also designate a Wholesale only FBB if its activities under C below are considered systematically important by SAMA. |
| (A) Payments, Cash, Settlement, Clearing, Custody | Payment services |
| Cash services | |
| (B) Lending | Securities settlement services |
| CCP clearing services | |
| Custody services | |
| (C) Capital Markets | Derivatives held for trading – OTC |
| Derivatives held for trading – non-OTC | |
| Secondary markets / trading ( held-for-trading-only) | |
| Primary Markets / underwriting |