Menu
Search
Saudi Central BankSaudi Central BankNewsSaudi Central Bank Governor Affirms: The Kingdom has Solid Cash Position and its Banking Sector Displays Decent Financial Soundness Indicators
News
الاخبار
Saudi Central Bank Governor Affirms: The Kingdom has Solid Cash Position and its Banking Sector Displays Decent Financial Soundness Indicators
12/14/2021 11:00 AM

H.E. Dr. Fahad Almubarak, governor of the Saudi Central Bank (SAMA), congratulated the Custodian of the Two Holy Mosques, King Salman bin Abdulaziz Al-Saud and HRH Mohammad bin Salman, the Crown Prince, Deputy Prime Minister and Minister of Defense (May Allah protect them), for announcing the General State Budget of 2022, primarily focusing on economic recovery and dealing with challenges, to enhance the Kingdom's economic growth and empower its private sector.  Dr. Fahad affirmed that the Saudi Central Bank will remain committed to fulfilling its duties in line with the requirements of the Kingdom's economic needs and the goals of Saudi Vision 2030, centering its operations on a clear understanding of the Kingdom's current financial status quo and the future of its financial sector, noting that: "SAMA will continue to prioritize its expected role in strengthening the Kingdom's economy."

H.E. the governor further stated that: "In spite of the fact that the COVID-19 pandemic has placed the Kingdom, as well as the rest of the world, in unusual conditions, our economy has proven to be exceptionally resilient and this can be attributed to several factors, the most important of which is:   the agile response of the government, Central Bank and other Authorities to the crisis by swiftly deploying stimulus packages and taking the decisions necessary to preserve financial earnings and deal with the aftermath of the pandemic".

 Almubarak emphasized the fact that the Kingdom has maintained a very solid Cash Position as a result of its circumspect monetary policies, notwithstanding the fact that its banking sector possesses a high level of solvency, liquidity and operational efficiency, as well as a remarkable ability to face impending challenges. "The Financial Soundness Indicators of the Kingdom's Banking Sector are very decent, which shows that we are more than capable of dealing with any potential future challenges and crises." - he added. The governor stated that the Bank is always ready to provide all the immediate support needed to maintain the Kingdom's financial and monetary stability - whenever necessary - using all of the tools at its disposal, in line with the national Monetary Policies System and Liquidity Management Framework.

Dr. Fahad also revealed that several mitigative measures were taken within the context of the continuity of the businesses operating within the sectors supervised by the Central Bank and their return to "business as usual",  to alleviate the impact of the pandemic on these sectors and reduce the risk of their exposure to financial instability. He further commented on the matter by stating that "the Central Bank is committed to improving the core structure of the insurance sector by strengthening the financial position of companies, which is being largely achieved by promoting acquisitions and mergers." As for the finance sector, H.E. the governor noted favorable indicators of growth, referring to the fact that the number of the sector's licensed companies has reached the total 44 in the third quarter of 2021.

In terms of e-payments and digital transformation for payment, Dr. Fahad clarified that the sector has witnessed a notable increase in licensed SMEs (Small and Medium-Sized Enterprises) which will undoubtedly support the national economy and contribute to the process of the digitization of payments. H.E. noted that 3 new FinTech e-payment institutions and 2 digital banks were given their official licenses in 2021.

Regarding the Saudi Central Bank's management of foreign assets, Almubarak stated that the Bank continued to utilize its approach based on balanced investment policies, the best international practices in foreign assets management,  performance evaluation and risk assessment,  which had an overall positive impact on the Bank's financial position. The Central Bank's reserve assets saw a monthly growth of 3% in November 2021, reaching the sum total of 1,741 billion Saudi Riyal.  

H.E. the governor closed his statement by re-affirming that the Central Bank will remain committed to its role of maintaining national monetary and economic stability, and supporting Saudi Vision 2030 by aiming to achieve its projected goals which are at the core of Financial Sector Development Program. H.E. was adamant about the fact that Bank will continue to support the financial sector in order to enable it to enhance the Kingdom's macroeconomic fundamentals, paving the way for more future growth and progress, under the wise leadership and astute guidance of the Custodian of the Two Holy Mosques, King Salman bin Abdulaziz and the Crown Prince of the Kingdom, HRH Mohammed bin Salman (May Allah protect them).

Enterprise Keywords