Dr. Ahmed Alkholifey, Governor of the Saudi Central Bank (SAMA) lauded the stability of the Kingdom’s financial sector in face of the repercussions of COVID-19 pandemic.
Speaking during the Financial Stability Forum held on Dec. 6, Alkholifey, said: “We are keen to monitor the asset quality of the Saudi financial sector. We noted that the sector witnessed a rise in non-performing loans to 2.3 percent from 1.9 percent”.
The central bank is closely monitoring the solvency of the financial sector and the cost of finance that it sees as low due to the procedures it has taken, he noted.
Alkholifey also highlighted that some stimulus packages injected by SAMA are still existing due to the continued state of uncertainty.
Liquidity levels are very satisfactory, whether on the level of economy or the liquidity coverage ratio in banking sector, Alkholifey noted, adding that the money supply grew by over 5 percent in the first 10 months of the year.
Moreover, the liquidity coverage in the banking sector exceeded 190 percent, he concluded.
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