SAMA issued through its Circular # BCS 28411 dated 20 November 2011 the BCBS document entitled "Global Systemically Important Banks: Assessment Methodology and the Additional Loss Absorbency Requirement" for information purposes only, regarding reforms to improve the resilience of Global Systemically Important Banks (G-SIBs).
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In this regard, the BCBS has now issued the attached finalized document entitled "A Framework for Dealing with Domestic Systemically Important Banks (DSIBs)". SAMA is circulating it to the banks with the purpose that the framework for G-SIBs is also applicable to DSIBs. In specific, it is based on an assessment by local authorities on the impact of the failure of bank on the local financial system and local economy. In due course, SAMA will make an assessment and determine the D-SIBs in Saudi Arabia to which these principles will be applied. As the G-SIBs framework is to be phased in by January 2016, the same timeframe will applied to the D-SIBs.
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We suggest that all Banks should access these papers from Bank for International Settlements website: (bis.org) and distribute these to their relevant managers.
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