RIYADH: The Saudi Central Bank, also known as SAMA, on Wednesday said the Basel III reforms will come into force in the Kingdom"s banking sector on Jan. 1, 2023. “The move is in line with the internationally agreed timeline set by the Basel Committee on Banking Supervision,” said SAMA in a press statement. It is an international regulatory accord that introduced a set of reforms to mitigate risk within the international banking sector by requiring banks to maintain certain leverage ratios and keep certain levels of reserve capital. The Basel committee issued these reforms in December 2017 to strengthen regulation, supervision, and risk management in the banking sector. SAMA also updated the prudential framework for Saudi banks’ capital risks to align with these reforms as part of the Kingdom"s commitment as a member of the G20. The central bank also carried out a pilot program of Basel III during the second half of 2022. "The pilot application initially demonstrated the readiness of the banking sector for the official implementation while maintaining stable capital levels, which contributes to their financial stability,” the statement added.