1. Introduction
| No: 44047144 | Date(g): 27/12/2022 | Date(h): 4/6/1444 | Status: In-Force |
Basel Committee on Banking Supervision issued a document on Basel III: Finalizing post-crisis reforms in December 2017. Which includes the revised standardized approach as the sole approach for calculating operational risk capital requirements. A key objective of the revisions is to reduce excessive variability of risk-weighted assets (RWAs) whereby enhancing the resilience and soundness of Saudi Arabia’s banking system.
This updated framework is issued by SAMA in exercise of the authority vested in SAMA under the Central Bank Law issued via Royal Decree No. M/36 dated 11/04/1442H, and the Banking Control Law issued 01/01/1386H.
This Framework supersedes any conflicting requirements in previous circulars in this regard; (SAMA Detailed Guidance Document regarding the Basel II framework issued via circular no. BCS290 dated 12 June 2006).