KSA Flag IFRS 9 Compliance for Saudi Arabia

Stay ahead of Saudi Central Bank (SAMA) regulations with FineIT's Estimator 9. Automate ECL calculations, streamline reporting, and ensure full IFRS 9 compliance for your Saudi operations.

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FineIT provides IFRS 9 Solutions KSA Flag Overlay

What is IFRS 9? Relevance to Saudi Arabia

IFRS 9 is the international accounting standard for financial instruments, focusing on classification, measurement, impairment, and hedge accounting. In Saudi Arabia, the Saudi Central Bank (SAMA) mandates IFRS 9 compliance for all licensed banks and financial institutions, making it essential for accurate expected credit loss (ECL) calculations and robust financial reporting. This alignment with international standards strengthens the Saudi banking sector's credibility and resilience.

  • Mandatory for Saudi banks as per SAMA regulations
  • Aligns Saudi Arabia with global financial reporting standards
  • Ensures transparency and comparability in financial statements

Local Compliance Requirements for IFRS 9 in Saudi Arabia

The Saudi Central Bank (SAMA) has issued detailed guidelines for IFRS 9 implementation, including:

  • Model Validation: Regular validation and back-testing of ECL models
  • Data Quality: High standards for data integrity and completeness
  • Timely Reporting: Strict deadlines for regulatory submissions
  • Audit Trails: Comprehensive documentation for audits and regulatory reviews

Reference: SAMA Regulations

Key IFRS 9 Challenges for Saudi Banks

  • Data Quality: Ensuring reliable, granular data for ECL modeling
  • Regulatory Updates: Adapting to frequent changes in SAMA guidance
  • Resource Constraints: Limited skilled personnel for model validation and reporting
  • System Integration: Integrating IFRS 9 solutions with core banking and risk systems
  • Disclosure Requirements: Meeting enhanced disclosure and transparency standards

FineIT's IFRS 9 Solution for Saudi Arabia

  • Automated ECL Calculations: Fast, accurate, and fully compliant with SAMA requirements
  • Regulatory Reporting: Pre-built templates for all required disclosures and regulatory returns
  • Seamless Integration: Works with core banking, risk, and data warehouse systems
  • Audit & Validation: Full audit trails, model validation, and stress testing support
  • Continuous Updates: Always up-to-date with the latest SAMA regulatory changes

Discover more: IFRS 9 Compliance Software

Why Choose FineIT for IFRS 9 in Saudi Arabia?

  • Trusted by Saudi Banks: Proven track record with leading Saudi financial institutions
  • Local Support: Dedicated Saudi-based support and rapid response to regulatory changes
  • Comprehensive Training: In-depth onboarding and ongoing training for your teams
  • Continuous Product Updates: Always compliant and high-performing
  • Client Satisfaction: High client retention and satisfaction rates in Saudi Arabia

What Our Clients Say

IFRS 9 in Saudi Arabia – Frequently Asked Questions (FAQs)

Yes, all licensed banks and financial institutions in Saudi Arabia must comply with IFRS 9 as per SAMA regulations.
Data limitations, model validation, and integration with local regulatory requirements are key challenges for Saudi banks.
FineIT provides automated, regularly updated solutions and local support for ongoing compliance with SAMA and IFRS 9 requirements.
SAMA requires banks to use a standardized system for loan classification (Standard, Special Mention, Substandard, Doubtful, Loss) and to maintain adequate provisions for expected credit losses, in line with both IFRS 9 and SAMA's own rulebook.
The Saudi Organization for Chartered and Professional Accountants (SOCPA) endorses IFRS 9 with additional disclosure requirements to reflect Sharia and local law, especially for Zakat and fair value measurement.
SAMA requires banks to calculate CVA risk capital for derivatives and securities financing transactions, with specific guidelines for hedging and risk management.
SMEs are required to use the IFRS for SMEs Standard as endorsed by SOCPA, with the option to use full IFRS if they meet certain conditions.
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