Under the auspices of the Minister of Finance, Dr. Ibrahim Alassaf, the Financial Stability seminar, organized by SAMA and CMA, was held on Tuesday 24-1-1438H/ 25-10-2016 in Riyadh. A number of speakers from the International Monetary Fund (IMF), International Organization of Securities Commissions (IOSCO), government entities, quasi-government entities, and managers of banks and risk departments participated in the seminar along with representatives from insurance, finance, investment companies, and a number of experts.

     The seminar addressed the opportunities and challenges facing the financial system in the Kingdom. It discussed three main themes which are financial stability policies, the role of financial stability in promoting macroeconomic growth, and the importance of achieving a balance between financial stability and economic growth.

     Dr. Ibrahim Alassaf said in his opening speech that the Kingdom has been able to reduce and stabilize the pace of the reduction in government reserves despite the continuing decline in oil prices that has persisted for more than two years. In addition, the banking system in the Kingdom still shows strong balance sheets and financial soundness indicators while national public debt level is still low, and reserve levels remain high. He added that Saudi financial institutions are still resilient as banks still maintain relatively high levels of capital adequacy and liquidity ratios, although there are some pressures on system-wide liquidity.

     Dr. Alassaf praised the actions taken by several government agencies as part of their mandate and within their role of implementing the new 2030 Vision and the National Transformation Program. Some of the actions taken have succeeded in reducing the downward pressure on economic growth, such as the actions taken by the Ministry of Finance and SAMA to support the economy. Other actions, such as the fiscal consolidation measures that the government has taken recently, are expected to lower the pressure on the government deficit. He also praised the role of government funds in creating depth and achieving financial stability.

     Furthermore, SAMA's Governor, Dr. Ahmad Alkholifey, and CMA's Chairman, Mohamed Aljadaan, extended their thanks to all participants for enriching the conference with their effective discussion on the financial stability in the Kingdom.