To: All Licensed Banks

Operating in the Sultanate of Oman

After Compliments,

Sub: Concept paper on capital buffer requirements under Basel III

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1. As you are aware, the final roadmap for implementation of the capital adequacy framework in the light of the Basel Ill announcements was issued vide our circular no. BM 1097 dated August 12, 2012. Subsequently , two concept papers on (i) Regulatory Capital under Basel Ill (CP-1) and (ii) Composition of Capital Disclosure Requirements (CP-2) were also issued vide our circular no. BM-1114 dated November 17, 2013.

2. A draft concept paper on capital buffers was issued for industry consultations in terms of our letter no. BSD/2015/Basel Ill/ All Banks /557 dated April 19, 2015 and we thank all the banks for their inputs. The concept paper outlining the mechanisms to implement the Capital Conservation and Countercyclical buffers has since been finalized and is being separately emailed to the Chief Financial Officer/Country head of your bank.