Saudi Arabia’s Capital Market Authority (CMA) has set up a risk control authority as part of its financial stability initiatives, CMA Chairman Mohammed El-Kuwaiz said.
The move is in-line with the new environment which calls for adopting regulatory measures to monitor risks, especially structural risks at market level, he said during the Financial Stability 2018 seminar.
CMA is working to develop the financial market by also updating stock offering regulations in order to enable new segments and ease the offering requirements, in addition to giving new categories of investors and companies access to Nomu-Parallel Market, he said.
Among the risks also is opening the market to foreign investors, which exposes the market to fluctuations and unfamiliar indicators.
The market is facing another key risk in case of an increase in lending rates, as it entails a great risk of liquidation, which may expose the market to structural risks, he noted.
CMA is also working on developing governance, as well as the internal and external auditing sector, El-Kuwaiz added.
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