With regard to this section, SAMA in consultation with Banks through multilateral and bilateral meetings will provide the necessary Required Stable Funding factor.
SAMA may, in limited circumstances, determine whether certain asset and liability items, on the basis of contractual arrangements, are interdependent such that the liability cannot fall due while the asset remains on the balance sheet, the principal payment flows from the asset cannot be used for something other than repaying the liability, and the liability cannot be used to fund other assets. For interdependent items, SAMA may adjust RSF and ASF factors so that they are both 0%, subject to the following criteria:
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The individual interdependent asset and liability items must be clearly identifiable.
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The maturity and principal amount of both the liability and its interdependent asset should be the same.
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The bank is acting solely as a pass-through unit to channel the funding received (the interdependent liability) into the corresponding interdependent asset.
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The counterparties for each pair of interdependent liabilities and assets should not be the same.
Before exercising this discretion, SAMA will consider whether perverse incentives or unintended consequences are being created.
Please note that based on assessment, SAMA has decided not to exercise its discretion to apply any exceptional treatment to interdependent assets and liabilities.
