Saudi Arabia to demand banks to use simple interest within 6 months, SAMA

Saudi Arabian Monetary Agency, SAMA, is preparing new banking regulations that would oblige the kingdom’s lenders to replace compound interest with simple interest within 3 to 6 months, al-Arabiya television reported, citing SAMA’s Governor Fahd al-Mubarak’s press remarks in Riyadh today.

 Mr al-Mubarak also said that some listed insurance  companies are facing financial troubles and they will have to either merge or increase their capitals, he added.