2015年-FSB全球金融稳定委员会_Peer_Review_of_Saudi_Arabia_50页_643kb

Peer Review Summary of Saudi Arabia

Core Content

This report presents the findings and recommendations of the Financial Stability Board (FSB) peer review of Saudi Arabia, conducted in September 2015. The review focuses on three key areas: macroprudential policy framework, bank resolution, and deposit insurance. It assesses the progress made by Saudi authorities in implementing reforms and provides recommendations to further strengthen financial stability mechanisms.

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Main Findings

• Macroprudential Policy Framework:
  SAMA has made significant progress in developing a formal macroprudential framework, including the establishment of a Financial Stability Committee (FSC), a Financial Stability Department, and the publication of the first Financial Stability Report (FSR). However, further work is needed to enhance institutional arrangements, improve data collection and risk assessments, and clarify communication strategies.

• Bank Resolution:
  Saudi Arabia lacks a formal resolution framework for banks. SAMA has historically used its supervisory powers under the Banking Control Law (BCL) to manage bank failures, but there is a need to formalise these processes. A draft resolution law (DLR) has been proposed, and the authorities are advised to expedite its adoption and develop detailed implementing regulations.

• Deposit Insurance:
  An explicit deposit insurance system (DIS) will be introduced on 1 January 2016 through the Depositor Protection Fund (DPF). While this marks progress, further steps are required to address the perception of an implicit deposit guarantee, improve the clarity and credibility of the DPF, and establish robust funding and communication mechanisms.

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Key Topics and Recommendations

1. Macroprudential Policy Framework

• Institutional Arrangements:

  • Establish the National Financial Stability Committee (NFSC) promptly.
  • Embed SAMA's financial stability mandate in the NFSC's Charter.
  • Enhance existing coordination and information-sharing mechanisms between member agencies.

• Scope of Framework:

  • Include specialized credit institutions (SCIs) within the macroprudential framework for data collection and systemic risk analysis.
  • Monitor SCIs due to their growing role and interactions with commercial banks.

• Analytical Capacity:

  • Expand data collection to include commodity and real estate price indices, business activity and confidence indicators, and corporate and household sector leverage.
  • Improve stress testing by incorporating second-round effects and enhancing modelling capabilities.
  • Analyse transmission channels and interactions between macroprudential and other policies.
  • Clarify how SAMA balances its dual mandate of financial system growth and soundness.

• Communication:

  • Develop a clear communication policy for macroprudential measures.
  • Use the FSR as a key tool for public communication, and consider additional forms of communication to guide market expectations.

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2. Bank Resolution

• Adoption of DLR:

  • Expedite the adoption of the Draft Law on the Resolution of Financial Institutions (DLR) to establish a general resolution framework aligned with FSB Key Attributes.
  • Ensure that the DLR is operationalised as soon as possible.

• Implementing Regulations:

  • Develop detailed implementing regulations to clarify the conditions for entry into resolution and the creditor hierarchy.
  • These regulations are essential for ensuring transparency, predictability, and credibility of the resolution regime.

• Recovery and Resolution Planning:

  • Initiate recovery and resolution planning for systemically important banks before the adoption of the DLR.
  • Use these plans to inform the development of implementing regulations and enhance the effectiveness of the new resolution regime.

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3. Deposit Insurance

• Addressing Implicit Guarantee:

  • Clarify and communicate the withdrawal of the implicit deposit guarantee provided by the Supreme Economic Council.
  • Consider an explicit transition period with gradually reduced coverage levels to avoid adverse effects on depositor confidence.

• DPF Governance and Independence:

  • Establish a clear governance structure for the DPF to ensure operational independence.
  • Ensure the composition of the DPF's governing committee is transparent and includes relevant stakeholders.
  • Implement safeguards to manage conflicts of interest.

• Information Sharing:

  • Develop information-sharing arrangements between the DPF and SAMA supervisory staff to enable timely detection of bank failures.

• Funding and Reimbursement:

  • Specify a target fund size for the DPF based on covered deposits.
  • Establish a back-up line of credit from the government/central bank to ensure timely deposit reimbursement.
  • Ensure that the DPF has the capability to provide quick reimbursement within seven days, as per the IADI Core Principles.

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Conclusion

The peer review highlights that Saudi Arabia has made substantial progress in developing its macroprudential policy framework, bank resolution mechanisms, and deposit insurance system. However, to fully align with international standards and ensure the effectiveness of these frameworks, further steps are required in terms of institutional arrangements, data collection, communication strategies, and the operationalisation of laws and regulations. The establishment of the NFSC and the DPF, along with the implementation of the DLR, are seen as critical to enhancing financial stability in the country.