The Saudi Central Bank (SAMA) announced on Wednesday that the Basel III reforms would come into force in the Kingdom’s banking sector in January 2023. “The move is in line with the internationally agreed timeline set by the Basel Committee on Banking Supervision,” SAMA said in a press statement. The statement added that the reforms, which were issued by the Basel Committee on Banking Supervision (BCBS) in December 2017, complement Basel III standards, issued by the BCBS in 2010. It aims at restoring credibility in the calculation of risk-weighted assets (RWA) by improving the sensitivity of the standardized approach (SA) used in calculating them, and reducing the reliance on the internal ratings-based approach (IRB). It also aims to complement the risk-weighted capital ratio with a revised leverage framework and minimum outputs for calculating risk-weighted assets (Output Floors), the central bank added. 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 Saudi central bank 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 noted. Meanwhile, the Saudi Pioneers Technical Systems announced on Wednesday a project to localize the manufacture of point-of-sale devices, in a step that supports the digital payments infrastructure in the Kingdom. The announcement came during a ceremony held at the company’s headquarters in Jeddah, under the auspices of Dr. Fahd Al-Mubarak, Governor of SAMA, and in the presence of Ziad. Al-Youssef, Deputy Governor for Development and Technology, and Eng. Al-Badr Fouda, Undersecretary of the Ministry of Industry and Mineral Resources for Industrial Development. Eng. Subhi Al-Ghamdi, CEO of Pioneers Technical Systems, said that the project “will contribute to digital progress and the development of local content in the Kingdom, which confirms the continuous endeavor to localize the technology industry and promote comprehensive national economic growth, in accordance with the strategy to achieve Vision 2030.”