The Saudi Arabian Monetary Authority (SAMA) doesn’t mind merger between Saudi banks if it serves the sector and the economy, Ahmed Alkholifey, the governor of SAMA, the Kingdom’s central bank, said.
Speaking during a virtual meeting organized by the Economy and Business Group and the International Monetary Fund (IMF) on the policies required to promote economic recovery from the ramifications of the coronavirus on the GCC countries, he said that SAMA has set requirements, adding that 3 requests for bank mergers have been put on hold until the situation becomes clear after the coronavirus outbreak.
Last month, National Commercial Bank (NCB) signed a framework agreement with Samba Financial Group to begin due diligence process, and negotiate definitive and binding terms of a potential merger, according to data compiled by Argaam.
The merger between NCB, the largest Saudi bank in terms of assets, and Samba, the fifth largest bank in terms of assets, will create the largest Saudi bank with assets that reach SAR 802 billion.
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