Finalized Guidance Document Concerning the Implementation of Basel III

Annex # 8: List of BCBS Documents for References in the Implementation of Basel III Implementation of Basel III requires the aggregation of RWA under Basel II, Basel II.5 and Basel III. A. Basel III 1. Basel III: A Global Regulatory Framework for More Resilient Banks and Banking System – December 2010 (revised June 2011) issued through SAMA Circular # BCS 27885 dated 12 November 2011 . 2. Leverage Ratio (Basel III) issued through SAMA Circular # BCS 5610 dated 13 February 2011 3. Liquidity Ratios (Basel III) issued through SAMA Circular # BCS 28266 dated 19 November 2011 4. Pillar 3 for Basel III: SAMA Circular covering disclosure requirements and Guidance notes to be issued shortly. 5. Capital requirements for Bank's exposures to Central Counterparties of July 2012 issued through SAMA Circular # BCS 25092 dated 2 1 /11/1433 (Hijri) 6. Final Elements of the Reforms to Raise the Quality of Regulatory Capital – Loss Absorbency at the Point of Non- Viability issued through SAMA Circular # BCS 5611 dated 13 February 2011 . B. Basel II.5 7. Basel II.5: SAMA Circular # BCS 25478 dated 21 October covering Pillar 1, Pillar 2 and Pillar 3 components. C. Basel II 8. International Convergence of Capital Measurement and Capital Standards of June 2004 1 issued through the following SAMA Circulars. Standardized Approach • Pillar 1 Draft Guidelines issued through SAMA Circular dated 6 June 2006 • Basel II Prudential Returns Consultative Draft # 2 issued through SAMA Circular # BCS 180 dated 22 March 2007 • Capital Adequacy Requirements for Market Risk issued through SAMA Circular # BCS 355 dated 29 December 2004 . • Pillar 2 Document issued through SAMA Circular # BCS 581 dated 22 September 2008 • Pillar 3 Document issued through SAMA Circular # BCS 378 dated 24 May 2007 1 Update to BCBS Document of June 2006 through Basel II.5 SAMA Circular # BCS 25478 dated 21 October covering Pillar 1, Pillar 2 and Pillar 3 components. Annex # 9: National Discretions Basel III – Basel Committee Members Excluding EU Para's Description of items 52 Consider appropriate audit, verification or review procedures Yes 61 Apply a limit lower than 0.6% to excess provisions No 78 - 89 FAQ14 consolidation alternative to deduction No 80 FN 27 Permit banks to use a conservative estimate instead of look- through Yes 80 Permit banks to exclude investments made in the context of resolution Yes 84 FN 31 Permit banks to use a conservative estimate instead of look- through Yes 84 Permit banks to exclude investments made in the context of resolution Yes 99 Apply para 104 instead of 98 non-IMM CVA charge No* 121 Allow banks to use unsolicited ratings No 132 (c) Apply at solo level Yes 132 (d) Impose time limits on draw down of buffers Yes 133 Impose shorter transitional periods No 142 FN 50 Apply at solo level Yes PON Press release 1 (a) Apply Statutory approach No *Amended to Yes as per SAMA circular No. (361000021954) , dated 11/2/1436 H.