Attachment 5.6: Request for Recognition of Internal Rating Systems for Measurement of Credit Risk Capital Charge Under the Internal Ratings-Based (“IRB”) Approach

No: BCS 290

Date(g): 12/6/2006 | Date(h): 16/5/1427

Effective from Jan 01 2008 - Dec 31 2007
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This form is to be completed by “Bank” wishing to adopt the IRB Approach for measurement of credit risk capital charge. SAMA should be notified of any subsequent changes to the information provided in this form and Table 1.
I.	Name of the Bank:
___________________________________________________________
II.	IRB implementation plan:
(a)	Please provide information regarding the bank’s IRB implementation plan by completing Table 1.
(b)	What is the bank’s target date for adopting the IRB Approach for capital adequacy purposes? In the case of a phased rollout implementation plan, please specify the target dates for the first and last phases of rollout.
___________________________________________________________
(c)	What is the bank’s estimate of the percentage of credit risk-weighted assets covered under IRB on a consolidated basis? Please specify the reference date used for the estimate. In the case of a phased rollout implementation plan, please provide estimates for the first and last phases of rollout.
___________________________________________________________
III.	Contact person for the IRB implementation project:
Name: ___________________
Position: ___________________
Telephone no: ___________________
Fax No: ___________________
Email address: ___________________
Signed by:
General Managers or Managing Directors: ___________________
(Name)
(Signature)
____________
Date: ___________________
Table–1 IRB Information Plan
Name of Banks

Asset classes under IRB ¹	Type of IRB Approaches to be adopted	Exposures as % of credit risk weighted assets ("RWAs") ² As of ________		Geographical location of exposures	Internal Rating Systems
Asset classes under IRB ¹	Type of IRB Approaches to be adopted	Solo basi³	Consolidated basis³	Geographical location of exposures	Name	Centrally developed by Parent/Group (A)⁴ or Developed locally	Date ready for SAMA's recognition ⁵
(I)	(II)	(III)	(IV)	(V)	(VI)	(B) (VII)	(VIII)
I. Corporate Exposures
a. Small and medium sized entities (SMEs)
b. Specialised lending (SL)
project finance object finance commodities finance income producing real estate
c. Purchase corporate receivables
d. Other corporate exposures
II. Bank exposures
a. Banks
b. Other exposures treated as bank exposures
i) Securities firms
ii) Public Sector Entities
iii) Multilateral development bank

III. Sovereign exposures
a. Sovereigns (and their central banks)
b. Other exposures treated as sovereign exposures
i) PSEs
ii) MDBs and other qualifying entities
IV. Retail exposures
a. Exposures secured by residential properties
b. Qualifying revolving retail exposures
c. Purchased retail receivables
d. Other retail exposures (please specify)
V. Equity exposures
(please specify)

VI. Assets under Securitisation
(please specify)

¹Banks should categories banking book exposures into different asset classes (i.e. corporate, bank, sovereign, retail and equity exposures, as well as assets under securitisation), subject to definitions set out in paragraphs 215-243, 273 and 538-542 of the ―International Convergence of Capital Measurement and Capital Standards : A Revised Framework" issued by the Basel Committee on Banking Supervision in June 2004.
²RWAs should be calculated based on the Current Basel Capital Accord
³ Missing
⁴In the case of banks that are branch of foreign banking groups, all or part of their IRB systems may be centrally developed by the parent bank and monitored on a group basis.
⁵For the purpose of this table, an internal rating system is regarded as ready for SAMA's recognition if the bank considers that it meets all the minimum qualifying criteria set out the Implementation Plan of the ―Basel II‖ in Saudi Arabia‖ issued by SAMA in May 2005.