Saudi Arabia Banks a Long Term Must Own
Saudi Arabia’s banking sector registered strong and continuous growth in the past 10 years (2003“2012), surpassing the consequences of the global financial crisis.
The total assets of commercial banks tripled from SR508 billion to SR1,734 billion.
Saudi Arabia Monetary Authority (SAMA) said the private sector banking liabilities saw a five-fold increase in the same period from SR206 billion to SR 999 billion.
The Kingdom also maintained high sovereign classifications for its financial strength from international rating agencies.
The last of these came from the Fitch Ratings when it granted AA credit ratings to the Kingdom, with a positive future outlook, emphasizing the Kingdom’ strong economy, sound financial status and successful financial and economic policies.
SAMA is committed to implementing the Kingdom’s monetary policies and supervising banks in building a strong and modern banking system, capable of maintaining the funds of depositors and shareholders.
It also aims at meeting local demand for financing, in addition to providing modern and comprehensive banking services from gigantic financial units with strong financial liquidity and professional administration that can compete on international and regional levels.
The basic financial structure in the Kingdom witnessed many developments through a series of steps and organized procedures, which rooted the required basics for achieving financial stability since the 1970s.
Sound regulations helped Saudi banks to maintain a strong position and enjoy high standard indicators for its abundant capital and effective administrations, in addition to its internal supervision and it application of the best principles of corporate governance.
The number of insurance and reinsurance companies reached 33, in addition to 66 companies that offer insurance support services.
The total amount of premium fees reached SR21 billion in 2012 in comparison with SR5.2 billion in 2005.
SAMA performs its supervisory role over the funding sector, according to the best international standards and takes all necessary measures to maintain the safety of this activity and ensure its stability to protect the rights of all those who deal within it, in addition to encouraging legitimate and just competition between its companies.
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