Saudi news

Standard & Poor’s does not rule out increasing the “Saudi Central” support for banks

Standard & Poor’s agency stated that the rapid growth in lending in Saudi Arabia may put pressure on the liquidity of the sector, noting that it is not yet clear whether the government will increase its deposits in banks to support liquidity levels.

According to the agency, expectations indicate a continuation of an increase in corporate lending amid the acceleration of the implementation of projects related to Vision 2030.

In another context, Standard & Poor’s expects the Saudi Central Bank “SAMA” to continue extending the duration of the support programs granted to the sector.

The agency did not rule out increasing the “Central” support provided, at a time when it will encourage banks to attract deposits from the private sector.

The agency’s positive view of the majority of Saudi banks continues, despite the decline in profitability expectations as customers continue to transfer their savings to term deposits, which increases the cost to lenders in light of the current interest rate environment.

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button