Minimum Capital Requirements for Credit Risk

The standard risk weight for all other assets will be 100%, with the exception of the following exposures: 1. A 0% risk weight will apply to: (a) Cash owned and held at the bank or in transit; and (b) Gold bullion held at the bank or held in another bank on an allocated basis, to the extent the gold bullion assets are backed by gold bullion liabilities. 2. A 20% risk weight will apply to cash items in the process of collection. 8. Standardized Approach: the Use of External Rating Recognition of External Ratings by SAMA 8.1 The following ECAIs qualify as Eligible ECAI’s in Saudi Arabia, (1) Standard & Poor's (S&P); (2) Moody's; and (3) Fitch. The recognition process 8.2 Only credit assessments from credit rating agencies recognized as external credit assessment institutions (ECAIs) will be allowed. SAMA will determine on a continuous basis whether an ECAI meets the criteria listed in 8.3 and recognition will only be provided in respect of ECAI ratings for types of exposure where all criteria and conditions are met. SAMA will also take into account the criteria and conditions provided in the International Organization of Securities Commissions' Code of Conduct Fundamentals for Credit Rating Agencies when determining ECAI eligibility. Eligibility criteria