Saudi Gazette report

RIYADH — The Saudi Arabian Monetary Authority (SAMA) has injected SR50 billion into the banking sector to boost liquidity and enhance lending capacity for the private sector, it said in a statement on Monday.

The move aims to help banks restructure or modify the private sector loans without additional charges, as well as maintaining employment levels and provide certain e-services for free.

The banking sector is performing well and indicators show that total assets jumped 14% to SR2.7 trillion at the end of Q1 2020, compared to a year earlier.

Credit facilities to the private sector in the first three months of the year rose 12% and the average capital adequacy ratio (CAR) reached 18.6%, while the liquidity coverage ratio (LCR) reached more than 201%, the statement added. Moreover, the net stable funding ratio (NSFR) hit 126%.

These indicators positively reflect the continued pivotal role of commercial banks in the economic development of the Kingdom. SAMA said it will continue to maintain financial stability and enhance the banking sector efficiency in line with the Saudi Vision 2030.