SAMA updates interest rate disclosure rules on financing, savings products

The Saudi Arabian Monetary Authority (SAMA) issued updated version of the rules on disclosure of interest rates on financing and savings products. The updated rules will promote transparency and enable consumers to compare financing and saving products rates.

Banks and finance companies operating in Saudi Arabia are required to disclose and publish the minimum information required about products offered to retail consumers, micro and small enterprises on their websites and through their marketing channels, SAMA said in a statement.

SAMA indicates that the updated rules that supersede the previous versions, require banks and finance companies to include all financing and savings products rates in one page under an icon called "Rates of Financing and Savings Products."

The icon shall appear in the home page of the bank or finance company website to provide consumers with easy access. The page will include all tables and calculators related to financing products, savings products and credit cards, if any. The calculator should show the type of product and its periodic rate based on the consumers inputs.

Moreover, the new rules require banks and finance companies to carry out a periodic review (at least every month) of the rates and state the date of last update at the top of the page.