Banks in KSA required to submit plans for liquidating real estate assets: SAMA

The Saudi Central Bank (SAMA) instructed all banks operating in the Kingdom to submit annual plans for liquidating real estate assets acquired through the settlement of non-performing loans, within 30 days after the end of each calendar year, Okaz newspaper reported.

SAMA reaffirmed that if a bank acquires real estate in settlement of a debt—and the property is not required for operations, employee housing, or welfare—it must be liquidated within three years from the date of acquisition.

Key requirements include preparing annual, comprehensive liquidation plans using an approved template, covering all properties, including those nearing the end of the legal holding period, those requiring an extension, and those still within the three-year limit.

The plans will be subject to to internal audit review and board approval, with audit reports and board resolutions submitted to SAMA and shared with the General Department of Banking Licensing.

Individual extension requests will not be accepted. Only extensions included in the annual plan will be considered.

Within 30 days after mid-year, a detailed statement of acquired properties will be submitted (per the approved template) to be forwarded to the General Department of Banking Supervision and Inspection.