The Saudi banking sector’s liquidity is in a good position and the decline in lending rates has contributed to better dividends, National Commercial Bank’s (NCB) Chairman Mansour Al-Maiman said in an interview with Al Arabiya TV.
Lending rates are likely to improve over the coming period, Al-Maiman said, adding that the new plan will stimulate better lending rates next year, with several sectors bracing for growth.
During the first half of this year, NCB’s loans-to-deposit ratio reached 81.6 percent, lower than the 90 percent limit set by the Saudi Arabian Monetary Authority (SAMA) and also than peers’ average— which reflects the bank’s efforts to boost lending.
Domestic bonds are attractive investment instruments. NCB has subscribed to government sukuk, which represent 31 percent of the bank’s total bond and sukuk portfolio, Al-Maiman said.
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