Any breaches of the exposure limits, must be communicated immediately to SAMA. The communication to SAMA must also include the bank's action plan to bring the exposure to within the breached limit. Furthermore, any such breaches may attract punitive supervisory action depending upon their materiality.
In exceptional circumstances where a bank’s proposed exposure to a counterpart) is likely to exceed any specific limits in these rules, the bank must obtain approval from SAMA prior to undertaking that exposure. In such cases, the bank must provide SAMA with the assessment of the following:
a.
The concentration risks involved with exceeding the large exposure limits and why the proposed exposures will not unreasonably expose the bank to excessive risk; and
b.
How the proposed exposure is consistent with its large exposures and risk concentration policies.
SAMA may impose additional concentration risk capital requirements on exposure amounts that exceeds any specific limits in these rules.
