SAMA open to more bank M&As if economy benefits: Alkholifey

Saudi Arabian Monetary Authority (SAMA), the Kingdom’s central bank, will not object to mergers and acquisitions (M&As) in the banking sector if it benefits the sector and the economy, its governor said on Wednesday.

“Currently, there are two M&As happening. One is being finalizing already and the other is in the initial stage. However, we have no other request for merger right now,” Ahmed Alkholifey, governor, SAMA told the first Financial Sector Conference (FSC) in Riyadh.

In March, the Saudi General Authority for Competition (GAC) approved Saudi British Bank’s (SABB) planned acquisition of Alawwal Bank . In December 2018, National Commercial Bank, the Kingdom’s largest bank in terms of assets, said it has started initial talks with Riyad Bank for a possible merger.

Earlier this year, Moody's Investors Service said it expects further consolidation in the GCC banking sector as consolidation will boost profitability and  benefit from greater pricing power and cost synergies.