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A key aim of the Regulatory Consistency Assessment Programme (RCAP) is to assess the consistency and completeness of a jurisdiction's adopted standards and the significance of any deviations from the regulatory framework. The RCAP does not take account of a jurisdiction's bank supervision practices nor does it evaluate the adequacy of regulatory capital and high-quality liquid assets for individual banks or a banking system as a whole.
The assessment outcomes for the Kingdom of Saudi Arabia are highly positive and reflect various amendments to the risk-based capital and LCR rules undertaken by the authorities during the assessment. The Basel Committee on Banking Supervision (BCBS) noted that several aspects of the domestic rules in the Kingdom of Saudi Arabia are more rigorous than required under the Basel framework.
Overall, the domestic implementation of the risk-based capital framework is found to be "compliant" with the Basel standards as all 14 components are assessed as "compliant". Regarding the LCR, the Kingdom of Saudi Arabia is assessed overall as "largely compliant", indicating that most but not all provisions of the Basel standards were met. The implementation of the LCR regulation is assessed as "largely compliant" and the implementation of the LCR disclosure standards is assessed as "compliant".
Liquidity Coverage Ratio (LCR)