International Monetary FundWorld Bank2013-10-012013-10-012011-09https://hdl.handle.net/10986/15972This assessment of Saudi Arabian Monetary Agency's (SAMA) compliance with the basel committee's core principles for effective banking supervision was conducted by a mission to Saudi Arabia during April 9-20, 2011. The assessment was carried out as part of a Financial Sector Assessment Program (FSAP) update undertaken by the International Monetary Fund (IMF) and the World Bank at the request of the Saudi authorities. The authorities requested that the assessment of compliance be conducted using only the essential criteria in the methodology. This assessment was based on a review of laws, regulations, policies and practices in place at the time. The financial system is subject to risks reflecting the openness of the economy and dependence on the hydrocarbon sector, as well as the size of the market. Saudi Arabia implements International Financial Reporting Standards (IFRS) for banks and insurance companies and is served by the major accounting firms. There has been no need to provide emergency liquidity assistance (ELA) to any bank in recent years. The conditions in which SAMA will provide ELA would be determined on a case-by-case basis, as will the terms on which such ELA will be provided.en-USCC BY 3.0 IGOACCOUNTABILITYACCOUNTINGACCOUNTING PRINCIPLESAFFILIATED COMPANIESAFFILIATESAMOUNT OF RISKANTI-MONEY LAUNDERINGAPPROVAL PROCESSARREARSASSET CLASSASSET QUALITYAUDIT COMMITTEEAUDITINGAUDITORSAUTONOMYBALANCE SHEETBANK ASSETBANK ASSETSBANK BRANCHESBANK MANAGEMENTBANK OFFICIALSBANKING ASSETSBANKING INDUSTRYBANKING LAWBANKING LAW REFORMBANKING LAWSBANKING REGULATIONBANKING SECTORBANKING SUPERVISIONBANKING SYSTEMBANKRUPTCYBANKSBIDBORROWERBUSINESS PLANBUSINESS PLANSBUSINESS STRATEGYCAPITAL ADEQUACYCAPITAL ADEQUACY RATIOSCAPITAL BASECAPITAL MARKETCAPITAL MARKETSCAPITAL PLANNINGCAPITAL REQUIREMENTCAPITAL REQUIREMENTSCAPITALIZATIONCASH RESERVESCENTRAL BANKSCENTRAL GOVERNMENTSCOLLATERALCOLLATERAL REGIMECOLLATERAL REMAINSCOMMERCIAL BANKSCONFLICT OF INTERESTCONFLICTS OF INTERESTCONSOLIDATED SUPERVISIONCONTINGENCY PLANNINGCORPORATE CREDIT RISKCORPORATE GOVERNANCECOUNTRY RISKCOUNTRY RISKSCREDIBILITYCREDIT APPROVALCREDIT BUREAUCREDIT FACILITIESCREDIT GROWTHCREDIT LOSSESCREDIT POLICIESCREDIT PROCESSESCREDIT REPORTINGCREDIT REPORTING SYSTEMCREDIT RISKCREDIT RISK MANAGEMENTCREDIT SQUEEZECREDITSCREDITWORTHINESSCRITERIA FOR INVESTMENTSCROSS-BORDER BANKINGDEPOSITDEPOSIT INSURANCEDEPOSIT LIABILITIESDEPOSITORDEPOSITSDERIVATIVEDERIVATIVESDISCLOSURE REQUIREMENTSDOMESTIC BANKSEMPLOYMENTEMPLOYMENT OPPORTUNITIESENFORCEMENT PROCEDURESEXTERNAL AUDITORSFACILITATIONFAMILY BUSINESSFAMILY RELATIONSHIPSFINANCE COMPANIESFINANCIAL CRISISFINANCIAL INFRASTRUCTUREFINANCIAL INSTITUTIONSFINANCIAL SECTOR ASSESSMENTFINANCIAL SERVICESFINANCIAL STABILITYFINANCIAL STATEMENTSFINANCIAL STRENGTHFINANCIAL SUPPORTFINANCIAL SYSTEMFINANCIAL SYSTEMSFOREIGN BANKFOREIGN BANKSFOREIGN CURRENCYFOREIGN EXCHANGEFOREIGN EXCHANGE TRANSACTIONSGOOD FAITHGUARANTORHEDGE FUNDHOLDINGHOLDINGSHOUSINGHOUSING LOANSINFORMATION SHARINGINFORMATION SYSTEMINFORMATION TECHNOLOGYINSTALLMENTINSTALLMENT SALESINSURANCEINSURANCE COMPANIESINTEREST RATEINTEREST RATE RISKINTERNAL AUDITINTERNAL AUDITSINTERNAL CONTROLSINTERNATIONAL BANKINTERNATIONAL BANKSINTERNATIONAL FINANCIAL INSTITUTIONSINTERNATIONAL INVESTORSINTERNATIONAL LENDINGINTERNATIONAL STANDARDSINVESTMENT ACTIVITIESINVESTMENT PORTFOLIOSLAWSLEGAL AUTHORITYLEGAL BARRIERSLEGAL CULTURESLEGAL FRAMEWORKLEGAL PROTECTIONLEGAL PROVISIONSLEGAL REQUIREMENTSLEGAL SYSTEMSLEGISLATIONLENDERSLENDING EXPOSURESLEVEL OF RISKLEVEL PLAYING FIELDLINES OF CREDITLIQUID ASSETLIQUID ASSETSLIQUIDITYLIQUIDITY ASSISTANCELIQUIDITY MANAGEMENTLIQUIDITY RISKLOANLOAN CLASSIFICATIONLOAN PORTFOLIOLOAN PORTFOLIOSMARKET RISKMARKET RISKSMARKET SHAREMARKET SHARESMARKET STRUCTUREMINIMUM CAPITAL REQUIREMENTMONETARY FUNDMORTGAGEMORTGAGE LOANSNEW ENTRANTSNONPERFORMING LOANNPLOFF BALANCE SHEETOPERATIONAL INDEPENDENCEOPERATIONAL RISKOWNERSHIP STRUCTUREPOLICY RESPONSEPROFITABILITYPRUDENTIAL REGULATIONPRUDENTIAL REQUIREMENTSPRUDENTIAL STANDARDSREAL ESTATEREAL ESTATE COLLATERALREGULATORY FRAMEWORKREPAYMENTREPAYMENT DIFFICULTIESRETAINED EARNINGSRETURNRETURN ON ASSETSRETURN ON EQUITYRETURNSRISK EVALUATIONRISK EXPOSURESRISK MANAGEMENTRISK MANAGEMENT STRATEGIESRISK MANAGEMENT SYSTEMSRISK PROFILERISK PROFILESSECURITIESSHARE OF ASSETSSHAREHOLDERSHAREHOLDERSSOLVENCYSUBSIDIARIESSUPERVISION OF BANKSSUPERVISORY AUTHORITIESSUPERVISORY AUTHORITYSUPERVISORY FRAMEWORKSUPERVISORY POWERSTERRORISMTIER 1 CAPITALTRADINGTRANSACTIONTRANSFER RISKTRANSFER RISKSTRANSPARENCYUNSECURED LOANSVAR MODELSWorld Bank10.1596/15972