For the purpose of this Guidance Note only:

The Framework: Refers to SAMA Basel Framework which includes the minimum risk-based capital and the relevant capital buffers, leverage, liquidity and large exposure standards, the supervisory review process under Pillar 2 and public disclosures under Pillar 3.

Standalone (Solo) level: Refers to the local bank entity excluding it subsidiaries. For the avoidance of doubt, standalone level includes domestic and foreign branches and representative offices.

Consolidated level: Refers to the local bank entity and all consolidated financial subsidiaries² where the bank have a majority ownership or – controlled.

Majority Ownership or –Controlled: Refers to ownership structure where one entity holds 50% or more of the equity of another entity or meet the control definition in the IFRS standards.

Financial subsidiary: Refers to a subsidiary engaged in predominantly financial activities³ including, but not limited to, investment firms, finance companies, payment companies and special purpose vehicles (SPVs) established to undertake financial-related activities.

² Financial subsidiary does not include insurance company.
³ Financial activities include financial leasing, issuing credit cards, portfolio management, investment advisory, custodial and safekeeping services and other similar activities that are ancillary to the business of banking.