Saudi banking sector enjoys strong solvency, says SAMA governor

Saudi Arabia’s banking sector is highly solvent and operationally efficient, and enjoys high liquidity, Ahmed Alkholifey, governor of the Saudi Arabian Monetary Authority (SAMA) said on Sunday.

He added, on the sidelines of the Annual Conference of KSA and UAE Banks, that the sector is closely monitored by SAMA.

The event, which kicked off in Riyadh on Nov. 24, 2019, is organized by SAMA in collaboration with the Central Bank of the United Arab Emirates.

Alkholifey pointed out that one of the vital tasks of the banking sector in the kingdom is the provision of banking facilities to both the private and public sectors, which witnessed a remarkable growth over the past years.

Financial soundness indicators in the Saudi banking sector exceed Basel requirement and international standards in several sectors including capital adequacy ratio, non-performing or doubtful loans and liquidity levels, SAMA governor stated.

He also noted that SAMA eyes reducing dependence on cash through continuous improvement of digital payments infrastructure, which would eventually lead to a cashless society.

SAMA has enacted bank-related legislations to finance Micro, Small and Medium Enterprises (MSMEs), Alkholifey stated.

He concluded that SAMA has formed a committee to study the mechanism of supporting the sector and submitting recommendations to enhance the role of financial institutions monitored by SAMA.