As part of its role in activating
monetary policy tools and preserving financial stability, the Saudi Arabian
Monetary Authority (SAMA) has decided to inject SAR 50 billion into the banking
sector to enhance banking liquidity and enable banks to continue providing
credit facilities for the private sector. Through this support measure, SAMA
aims to help banks revise or restructure the private sector loans with no
additional charges, support plans to maintain employment levels in the private
sector, and provide certain e-banking services for free.
indicates that the banking sector is still registering good performance
indicators, enabling it to face current challenges. At the end of Q1 2020, the
total assets of the banking sector jumped 14% to about SAR 2.7 trillion. Credit
facilities granted to the private sector also grew by 12% during the same
period. The average capital adequacy ratio (CAR) stood at 18.6%, liquidity
coverage ratio (LCR) 201%, and net stable funding ratio (NSFR) 126%. These
positive indicators have supported commercial banks in continuing their pivotal
role in the economic development in the Kingdom of Saudi Arabia.
Further, SAMA will continue to ensure
that the banking sector remains well functioning in line with Saudi Vision 2030
to contribute to promoting prosperity and development led by the Custodian of
the Two Holy Mosques, King Salman bin Abdulaziz, and HRH the Crown Prince
Muhammed bin Salman.