2.1 Loans to Governments

Includes loans to all sovereign governments including Saudi Arabia and are classified as follows:

2.2  Loans to Financial Institutions (include insurance companies, leasing companies etc.)

2.3  Loans to Corporates

       Public Non- Financial Corporates

Includes loans to all major public corporates such as ARAMCO, SABIC, SAUDIA, SEC, STC, SAPTCO etc. The detailed table as below provide examples:

Large Corporates

Includes loans to all major commercial corporates with annual revenues above SR200 million. If annual revenue data is not available, in that case number of full time, employees should be considered for the definition of Large Private Corporates. Full time employees should be above 249.

Medium Enterprises

Includes loans to all medium sized commercial corporates with annual revenues between SR40 million to SR200 million. If annual revenue data is not available, in that case number of full time, employees should be considered for the definition of Medium Private Corporates. Full time employees should be from 50 to 249.

Small Enterprises

Includes loans to all small sized corporates with annual revenue between SR 3million to SR40 million. If annual revenue data is not available, in that case number of full time, employees should be considered for the definition of Small Private Corporates. Full time employees should be from 6 to 49.

Micro Enterprises

Includes loans to all small sized corporates with annual revenue upto SR3 million. If annual revenue data is not available, in that case number of full time, employees should be consider for the definition of Micro Company. Full time employees should be from 1 to five 5.

Kafalah Fund

These loans are defined to be for a maximum amount of SR. 1 O MM made to an enterprise with a maximum turnover of SR. 200 MM and are guaranteed by the Kafalah fund.

Commercial real estate

A commercial mortgage or commercial real estate loan normally involves a financing a commercial real estate asset. It generally represents a long term debt normally for up to 25 years but can be for shorter periods. The loan is secured by commercial property being financed.

Other Businesses

These include all types of business exclusive of above i.e. partnerships, proprietorships, etc.

2.4 Retail Loans

Consumer Loans

Consumer loan includes loans to individuals, household and family members, granted

on the following basis:

• Granted by the creditor to a borrower as a secondary activity for the borrower, i.e. outside the sphere of the borrower's principal commercial or professional activity. It would generally include personal loans, overdraft facilities, car loans, payment card loans, etc.
• To finance purchase of goods and services for enjoyment, consumption and other such requirements of individuals as identified above e.g. to purchase furniture, household items, vacations, education, etc.
• These may cover Shariah compliant consumer loans under Murabaha, lstisna and other Islamic contracts.
• While mortgage loans are to be excluded, home improvement financing is included.

Credit Card Loans

These include all credit balances or amount owing by payment cardholders.

Mortgages or Housing Loans

A mortgage or housing loan normally involves a financing a real estate asset. It generally represents a long term debt normally for up to 25 years but can be for shorter periods. The loan is secured by residential property being financed where this lien is recorded in the title document. These may also include Shariah complaint residential property loans that are supported by an ljarah contract.

Other loans

Any other loan not already classified in above categories.

Interbank Loans

Refers to loan placements, made by one bank to another bank.

Investments

Represents investments in TBills, Bonds, fixed and floating rate securities issued by Government and quasi government, corporate, banks and other financial institutions and other counterparties.

2.7 Placements with SAMA - Represents reverse repo placements with SAMA. This should reconcile to line 2.6 of M1 return

3.1 Split of total deposits

• If a deposit is new, original maturity should be reported in the column WA rates - current quarter. However, in case of old deposits, residual maturity should be used to populate the column stating outstanding WA rates.
• Demand deposits (including Shariah Compliant deposits) represent non-special commission bearing customer deposits that have no maturity and can be withdrawn without prior notice. These deposits also include current accounts. If a bank does not pay any commission rate on the demand deposits, it should report it as zero.
• Saving deposits (including Shariah Compliant deposits) represent non-checking special commission bearing customer deposits with no defined maturity.
• Time deposits (including Shariah Compliant deposits) represent special commissions bearing customer deposits with a defined maturity.
• Split of deposit by counterparties (Government, Financial Institutions, Corporate, SME and Retail) is required to be populated as a memo line and should not affect totals or sub totals.

• Repo deposits from SAMA should reconcile to line 15.2, 15.3, 15.4 and 15.5 of M1 return.

   

3.2 Margin deposits

Represents all deposits received in relation to transaction in exchanges.

3.3 Bonds and SUKUK

Issued by banks should be reported according to their maturities. i.e. if the issuance is during the quarter, it should reflect original maturity date in the calculation of weighted average. However if there is an existing issuance, the weighted average %age reported in outstanding column should reflect residual maturity.

3.4 Interbank deposits

Refer to deposit received by one bank from another bank.

4. Example of Calculating Weighted Average Special Commissions

The weighted average rate is calculated as at the end of a given period, i.e, quarter.

Example-I

Example of computation of weighted average special commissions for a given period end balance in the amount of SR360 million is given below: