Completion Instructions on Capital to Risk Weighted Assets Return

Statutory Loan Loss Reserve These are provisions that have been appropriated from retained earnings (revenue reserves). This will only apply if provisions computed under quality requirements is in excess of impairment losses computed under International Financial Reporting Standards. However, loan loss reserve qualifying as supplementary capital should not exceed 1.25% of risk weighted assets total value. 1.2.8 Total supplementary capital This is the sub-total of the items in line 1.2.1 to 1.2.7. 1.2.9 Supplementary Capital/Core Capital (%) This is the percentage of the supplementary capital to core capital. Total supplementary capital should not exceed core capital. Where supplementary capital exceeds core capital, then qualifying supplementary capital is limited to the amount of core capital. 1.2.10 Total Capital Total capital is the sum of core capital and supplementary capital, i.e. Total of lines 1.1.13 and 1.2.8 1.2.11 Total Shareholders' funds The figure reported in this line should agree with the total shareholders funds as reported in the monthly balance sheet. 1.2.12 Difference Any difference between total capital and total shareholders' funds should be reported in this line and a reconciliation of the same be attached. 2. On-Balance Sheet Assets 2.1 Cash Enter in this line cash at hand (domestic notes and coins). 2.2 Balances with SAMA This includes reverse repo with SAMA, reserve requirement and any other balances held by SAMA. 2.3 KSA Government Treasury Bills These are Treasury bills issued by KSA Government. 2.4 KSA Government Treasury bonds These refer to the Treasury Bonds issued by KSA Government. 2.5 Lending fully secured by cash Enter here all other debts that are fully secured by cash. 2.6 Advances guaranteed by KSA Government This refers to all loans and advances duly guaranteed by KSA Government. 2.7 Cash in Foreign currencies Enter in this line cash at hand (foreign notes and coins). 2.8 Deposits and balances due from Local Institutions These are deposits and balances held with local banks, financial companies and mortgage finance companies including overnight balances. 2.9 Deposits and balances due from foreign institutions These are balances held with correspondent banks and financial institutions abroad. 2.10 Foreign Treasury Bills and Bonds These are bills and bonds issued by foreign governments, banks and other multilateral institutions. 2.11 Claims guaranteed by Multi-Lateral Development Banks (MDB's) These are loans, advances and capital market instruments such as commercial paper that are guaranteed by MDBs. 2.12 Loans secured by Residential Property These are facilities secured by residential properties situated within cities and municipalities in KSA. Such facilities should only be those classified as normal under Asset Quality Return and are performing in accordance with the original terms and conditions specified in the letter of offer. in addition, the security should be perfected in all respects and its current forced sale value should, cover in full, the outstanding debt with at least a 20% margin. The 50% weight will not be specifically applied to loans to companies engaged in speculative residential building or property development. 2.13 Other loans and advances These refer to loans and advances that are not guaranteed by KSA government and not secured by cash. These also include commercial paper and corporate bonds and should be reported net of provisions. Provisions must be computed in accordance with Asset Quality Return. However, provisions appropriated from retained earning should not be netted off from loans and advances. 2.14 Other investments These are investments in other companies other than financial institutions. 2.15 Fixed assets These are assets acquired for use in the operation of the business or for investment purposes, e.g. furniture, computers, freehold and leasehold land and buildings. They should be shown net of accumulated depreciation, amortized cost, or at fair value.