Arab Finance: The Board of Directors of the Financial Supervision Authority, headed by Dr. Mohamed Farid, issued Resolution No. 137 of 2025 regarding the criteria of the financial solvency of companies and bodies working in non -bank financing activities, for the first time in line with international standards “Basel 3”.
The authority set the financial solvency of companies and agencies working in the non -banking financing sector, with the aim of compatible with the “Basel 3” standards applied to the banking sector, and works to enhance companies’ ability to face credit, operational and market risks, and reduce the negative effects of fluctuations and economic shocks.
These standards also work to ensure the availability of financial liquidity with these companies in a way that helps them to fulfill their obligations in the short and long periods, and to face potential losses, which enhances the safety and stability of the non -banking financial sector.
The Authority’s Board of Directors obligated the companies and the parties subject to the decision, to conduct an experimental application for standards and provide financial oversight with a quarterly report on the application of the application as of January 1, 2026, provided that the new sheet standards replace the financial solvency standards for companies and authorities working in non -bank financing activities mentioned in the text text or any other decisions issued by the authority as of January 2027.
The decision stipulated that companies and bodies operating in non -bank financing activities are to take the necessary measures for consensus and to apply the standards with the ongoing of their validity, provided that these procedures include the preparation of companies or bodies a plan for work and employment and equipping the electronic systems that enable them to apply the standards and provide the authority with the procedures as soon as they are taken.
The authority has introduced the financial solvency standards for microfinance activity to comply with international standards “Basel 3”, and amendments to the standards currently applied to real estate financing activities, financing rental, dispensation, consumer finance, and medium and small projects.
According to the decision, amendments to the criterion of capital adequacy were made by adding the margin of risk confrontation and the margin of confronting periodic fluctuations when calculating the capitalist base of companies, with the aim of taking into account the impact of economic fluctuations and fluctuations in the activity and their impact on companies.
It is worth noting that the Capital Adequacy Reporting is a criterion for financial reproduction, aimed at measuring the company’s ability to face the risks that are related to activity and mainly in the credit risks of funds issued by the company.
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