Saudi banks deny interest rate deal with SAMA

Saudi banks have no agreement with the Saudi Arabian Monetary Authority (SAMA), the kingdom’s central bank, over raising interest rates on bank loans in 2017, Al-Watan newspaper reported citing Talaat Hafez, secretary-general of the Media and Banking Awareness Committee of Saudi Banks.

Setting interest rates on bank loans hinges on several factors, including market conditions, competition, credit solvency and the loan tenure, he said. The central bank, which regulates and supervises doesn’t interfere in the daily business of commercial banks, he added.  

Thomson Reuters was recently selected as benchmark administrator and calculation agent for the Saudi Arabian Interbank Offer Rate (SAIBOR), Argaam reported.