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1.2. Objectives of the Rules

Effective from Sep 08 2019 - Sep 30 2019
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The main objectives of these Rules are to enable banks: 
 
 i.To contain the maximum loss a bank could face in the event of a sudden default or failure of a counterparty;
 
 ii.To manage credit concentration risk emanating from concentrated exposures to single counterparties or groups of connected counterparties, through diversification of credit portfolio;
 
 iii.To put in place a large exposures framework which complements and serves as a backstop to the risk-based capital requirements;
 
 iv.To deal effectively with large exposures so as to contribute to the stability of the financial system; and
 
 v.To ensure broader access to credit for the economic development of the Kingdom.