Saudi Central Bank announced the official implementation of the recent Basel III reforms in local banks at the beginning of this month. He explained that the Basel III reforms aim to raise the level of confidence in the methodology for calculating risk-weighted assets by improving the sensitivity of the standardized approach used to calculate them, reducing the reliance on the internal systems approach, and enhancing risk-based capital.

The Central Bank pointed out that in line with these reforms, it has worked to update the framework of prudential regulations related to capital risk in local banks, in order to fulfill the Kingdom's obligations as a member of the G20, and to complete its endeavor to be one of the first countries to implement international standards.

The Central Bank of Saudi Arabia has also updated the framework of prudential regulations related to capital risk in local banks, in fulfillment of the Kingdom's obligations as a member of the G20, and in completion of its endeavor to be one of the first countries to implement international standards. During the second half of last year, the Central Bank conducted a pilot application of these reforms with the participation of all local banks, the preliminary results of which showed the readiness of the banking sector for the official application, while continuing to maintain stable capital levels.

The Central Bank also conducted a pilot application of these reforms with the participation of all local banks, which showed the readiness of the banking sector for the official application.