SAMA Governor says monetary conditions reassuring, banking sector enjoys good solvency

Fahad Almubarak, Governor of Saudi Central Bank 

The Governor of the Saudi Central Bank (SAMA) Fahad Almubarak stressed that the monetary conditions in the Kingdom are reassuring, as a result of the prudent monetary policy followed by the central bank.   

He added that the banking sector enjoys financial solvency, operational efficiency, good liquidity, and the ability to face current challenges.   

Almubarak said that the financial soundness indicators in the banking sector show that the sector is recording good performance, as the capital adequacy ratio reached 19.4% for Q3 2022, while the liquidity coverage ratio was at almost 174.2% for the same period, which enhances its ability to face challenges and crises.  

The governor also emphasized that SAMA continues to achieve the tasks entrusted to it in a manner consistent with the requirements of the national economy and the Kingdom's Vision 2030, and based on a clear vision of the financial sector and its future and role in strengthening the Kingdom’s economy.   

 In a statement by the Central Bank on the general budget for FY2023, Almubarak pointed out that despite the exceptional circumstances experienced by the Kingdom, like the rest of the world, the Saudi economy has proven resilience to withstand shocks, as a result of the rapid response of the government, SAMA and other authorities through the decisions taken to preserve  the economic gains.   

Concerning the management of the foreign reserves, he noted that the bank continued its approach based on a balanced investment policy, the use of the latest technologies, and the adoption of best international practices in the field of asset management as well as performance and risk measurement, which had an impact on strengthening the bank's financial position.    

In this regard, the governor indicated that the reserve assets of the central bank witnessed growth of 2.8% from the beginning of the year until the end of September to reach about 1.756 trillion.