Transcription of Prudential Rules - cma.org.sa
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Prudential Rules Contents Part 1: Introduction Chapter 1: Scope, Purpose and Definitions .. 7. Part 2: capital Base Chapter 2: capital Base Requirement .. 13. Chapter 3: Composition of capital .. 13. Part 3: Pillar I Minimum capital Requirements Chapter 4: General Provisions for the Trading Book .. 17. Chapter 5: Management Requirements for the Trading Book .. 19. Chapter 6: General Provisions for non-Trading Activities .. 21. Chapter 7: Calculating a Risk-Weighted Exposure Amount for non-Trading Activities .. 21. Chapter 8: Use of Credit Ratings .. 23. Chapter 9: General Provisions Regarding Operational Risks .. 25. Chapter 10: Basic Indicator Approach for Operational Risk .. 25. Chapter 11: Standardised Approach for Operational Risk .. 25. Chapter 12: Expenditure-based Approach for Operational Risk .. 26. Chapter 13: General Provisions Regarding Foreign Exchange Rate Risk .. 27. Chapter 14:Valuation and Conversion to Local Currency .. 27. Chapter 15: Calculating the capital Requirement for Foreign Exchange Rate Risk.
Internal Capital Adequacy Assessment Process or “ICAAP”: an internal process in which all the authorised person’s risks are identified and assessed, including risks not captured in Pillar 1 of these Rules. The process also includes capital planning. Capital Base: comprised of Tier-1 capital and Tier-2 capital.
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