Saudi banks achieved 'outstanding' performance in 2017: SAMA governor

The Saudi banking sector achieved outstanding performance indicators in 2017, the Saudi Arabian Monetary Authority (SAMA) Governor Ahmed bin Abdul Kareem Al-Kholifey, said on Wednesday.

He was delivering a speech on the occasion of presenting the 54th annual report of SAMA to the Custodian of the Two Holy Mosques, King Salman bin Abdulaziz Al Saud. The report reviews the economic and financial developments in the Kingdom of Saudi Arabia during fiscal year 2017.

“Total assets of commercial banks grew by 2.2 percent to over SAR 2 trillion. Bank capital and reserves went up by 6.3 percent to SAR 318 billion. The average capital adequacy ratio (Basel Standard) stood at 20.4 percent, which would support the resilience of financial sector and its capability to withstand financial crises,” he said.

“These indicators encouraged commercial banks to continue playing a vital role in economic development in Saudi Arabia,” he added.

He said the economic policies in Saudi Arabia have recently witnessed many developments aimed mainly at strengthening the economic structure and heading toward a diversified and sustainable economy. 

The Governor indicated that there were several positive indicators that contributed to the development of the financial sector in 2017.

Moreover, the monetary policy adopted by SAMA has contributed to foster the stability of exchange rate and provision of necessary liquidity to support economic activities. This was achieved through broad money supply (M3) that rose by 0.2 percent.