The following guidelines to be included in Pg 11 Section 4 “Materiality” of the SAMA’s Pillar 3 – Package of Disclosure Requirements and Guidance Notes, 2007
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(In addition to the original guidance)
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Materiality
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This Framework also anticipates a role for specific measures. Where disclosure is a qualifying criterion under Pillar 1 to obtain lower risk weightings and/or to apply specific methodologies, there would be a direct sanction (not being allowed to apply the lower weighting or the specific methodology).
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(Refer to Paragraph 812 of of International Convergence of Capital Measurement and Capital Standards – June 2006)
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The following guidelines to be included in Pg 12 Section 5.2 “Location of Disclosures” of the SAMA’s Pillar 3 – Package of Disclosure Requirements and Guidance Notes, 2007
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(In addition to the original guidance)
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Location of Disclosures
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In situations where the disclosures are made under accounting requirements or are made to satisfy listing requirements promulgated by securities regulators, banks may rely on them to fulfil the applicable Pillar 3 expectations. In these situations, banks should explain material differences between the accounting or other disclosure and the supervisory basis of disclosure. This explanation does not have to take the form of a line by line reconciliation.
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(Refer to Paragraph 814 of of International Convergence of Capital Measurement and Capital Standards – June 2006)
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