SAMA well-placed for potential hike in Fed rates: Alkholifey

The Saudi Arabian Monetary Authority (SAMA), the Kingdom’s central bank, is well positioned to withstand a potential hike in the US Fed key rates, Ahmed Alkholifey, SAMA’s governor, said on Sunday.

Various instruments are available and will be used to protect the FX rate.

The planned merger between Saudi British Bank (SABB) and Alawwal Bank is in final stages, Alkholifey said, adding that SAMA encourages mergers to build strong financial institutions and enhance financing going forward.

Last May, both banks said talks on the proposed merger are at an advanced stage with a preliminary share exchange ratio been agreed, Argaam reported.

Meanwhile, three GCC banks have applied for licenses to operate in the Kingdom and may begin operations by the end of this year.

SAMA is also considering to license a new digital bank.

Speaking about the insurance sector, Alkholifey said some insurers were requested to raise capital, adding that the regulations governing entrance of foreign insurance firms into the market will be published next month.