The application of the NSFR requirement in this document follows the scope of application set out in Regulation No. 1 Circular No: BCS 290 Date: 12 June, 2006, Title "Basel II - SAMA's Detailed Guidance Document relating to Pillar 1, June 2006 "Subsection: 2. Scope of Application of Basel II and Other Significant Items and SAMA Basel II Prudential Returns - circular # BCS 180 dated 22 March 2007* ⁴.The NSFR should be applied to all internationally active banks on a consolidated basis, but may be used for other banks and on any subset of entities of internationally active banks as well to ensure greater consistency and a level playing field between domestic and cross-border banks.

Regardless of the scope of application of the NSFR, in line with Principle 6 as outlined in Circular #BCS 771 dated 5 December 2008, a bank should actively monitor and control liquidity risk exposures and funding needs at the level of individual legal entities, foreign branches and subsidiaries, and the group as a whole, taking into account legal, regulatory and operational limitations to the transferability of liquidity.

^*  The application of the NSFR requirement in this document follows the scope of application set out in Circular No: 440471440000 dated Dec, 2022, Titled "Recent Basel Reforms "Subsection: Application of the Framework on Banking Groups in Saudi Arabia and Reporting Requirements. Local banks must comply with SAMA’s Basel Framework at both standalone and consolidated level.

⁴ See circular No. BCS 290 Title"Basel II-SAMA's Detailed Guidance Document relating to Pillar 1, June 2006, sama.gov.sa and SAMA Basel II Prudential Returns-circular No. BCS 180 dated 22 March 2007.