About Banking Control:
SAMA is responsible for ensuring soundness of the banking system and its effectiveness in carrying out its functions for the service of the country in general and users of its services and stakeholders. In pursuance of this responsibility, SAMA has established the Banking Control Department for this purpose. The Banking Control Department is concerned with supervising and controlling the banking sector in the Kingdom of Saudi Arabia under Royal Decree No. M/5 dated 22/2/1386H and Royal Decree No. 23 dated 23/5/1377H, particularly Articles 1 (C) and 3 (D) of the Banking Control Law which entrust SAMA with controlling banks and money exchangers and issuing instructions thereof.
The main objective of the Banking Control Department is to monitor and regulate the baking sector in the Kingdom of Saudi Arabia through granting licenses, issuing effective policies and regulations and carrying out inspection and supervision to ensure the banking sector’s compliance with regulations and take deterrent actions and establish justice in cases of noncompliance therewith.
Functions and Responsibilities of the Banking Control Department:
· Developing the regulatory and supervisory framework and issuing guidelines on tasks of supervision and on operations and procedures of inspection.
· Developing and issuing policies pertaining to the banking sector and rules for granting licenses.
· Exercising off-site supervision over domestic banks, money exchangers and branches of foreign banks in pursuance of procedural manuals and risk-based supervision.
· Exercising on-site inspection of domestic banks, money exchangers and branches of foreign banks.