Saudi banks' monetary conditions 'stable', daily liquidity surplus at SAR 43B: SAMA

The Saudi Central Bank (SAMA) said the average daily liquidity surplus of the Saudi banking system amounts to about SAR 43 billion, reflecting the stable monetary conditions and the system’s pivotal role in the local economy, Al-Eqtisadiah Newspaper reported.

SAMA closely monitors monetary and financial conditions, while promptly and effectively addressing them. The central bank is equipped to intervene if necessary to ensure the continuity of the banking system's role in supporting economic activities.

All financial safety indicators affirm the sector's safety and resilience. The sector leverages high liquidity and capitalization rates that enable maintaining regulatory precautionary requirements, and the quality of its assets.

The pace of credit demand growth strengthened over the past years as a result of stronger economic activity. The capital adequacy ratio recorded 20.1% by the end of 2023, while the liquidity coverage rate reached 176.5%. Meanwhile, the net stable financing rate at 114.6% by the end of Q1 2024, SAMA stated.

Elsewhere, the weighted loans-to-deposits ratio remained still below its statutory cap of 90%, reflecting the sector's lending ability in terms of various economic activities.