SAMA governor says new law comes in response to changes in financial sector

Ahmed Alkholifey, governor of Saudi Central Bank (SAMA), said the central bank law comes in response to several changes in the financial sector and the emergence of relevant challenges and risks.

He told Al Ekhbariya TV channel that the law comes in line with the economic reforms, which the Kingdom is witnessing, in light of its Vision 2030.

The law's most important features include the change of the central bank's name, clarification of the organization’s link with the Custodian of the Two Holy Mosques, as well as the increase in the number of the board of directors from five to seven.

In addition, the directors' membership period has also been amended.

The bank's board of directors will include the governor, deputy governor as well as five other non-government employee members. The directors' membership period will be seven renewable years, Alkholifey said.

He added that the relationship between the central bank, the government and international bodies will not change, stressing the independence of the bank as well as the immunity of its employees and assets

The governor also noted that the bank’s powers will not change, whether in its foreign investments or in all the tasks stipulated in the law.

As per the law, SAMA will utilize top financial technologies, as well as operate, supervise, control and license them, Alkholifey said.

According to data compiled by Argaam, Saudi Arabia’s Cabinet approved on Nov. 24 the Saudi central bank law and changing the name of the Saudi Arabian Monetary Authority (SAMA) to the ‘Saudi Central Bank’.