Saudi Banks Safe from Troubled US Banks

Business

March 17th, 10:09am

Riyadh - Bandar Al-Mosalam

The Saudi Minister of Economy and Planning participates at the Financial Sector Conference in Riyadh (Asharq Al-Awsat)

Ayman Al-Sayari, Governor of Saudi Central Bank (SAMA), ruled out any transactions between Saudi banks and troubled US banks, affirming that the Kingdom’s banking sector enjoys capital adequacy and reassuring liquidity. Al-Sayari spoke with Al-Arabiya TV on the sidelines of the Financial Sector Conference in Riyadh when he added that the Kingdom fully believes in the partnership between SAMA and the Financial Sector Development Program. He noted that the partnership will achieve Saudi Arabia’s Vision 2030 goals by supporting the growth and sustainability of the local economy while preserving the stability and durability of the Kingdom’s financial sector. Al-Sayari asserted that Saudi Arabia will “continue to move forward.” He affirmed that the Kingdom would hold the Financial Sector Conference’s third edition as it can catalyze the economy and attract investments, achieving government aspirations. In his closing speech at the Conference, Al-Sayari asserted that the gathering, directly and indirectly, impacted developing capabilities by exchanging expertise, discussing challenges, and finding ways to overcome them. Al-Sayari highlighted the broad participation at the conference, adding that it included several local and international financial industry leaders and experts. Participants, according to Al-Sayari, held several sessions during which they exchanged expertise and reviewed the best international practices. Moreover, discussions tackled regulation, legislation, and challenges. Al-Sayari said SAMA and its partners in the Financial Sector Development Program would continue to empower institutions, support the growth of the private sector and the national economy, diversify sources of income, and stimulate savings, financing, and investment. Saudi Arabia is also working to ensure the retirement system is sustainable, inexpensive, and fair through improving procedures and regulations, said Faisal Alibrahim, Minister of Economy and Planning. In a panel discussion at the Financial Sector Conference, the minister added that the Kingdom is keen to be proactive to ensure the development of policies aimed at addressing the rise in life expectancy and its consequences in terms of retirement. Alibrahim indicated that Saudi Arabia is one of the young countries. Still, it is working to address these challenges, noting that the country was also keen to be more flexible with the General Organization for Social Insurance (GOSI) and made several changes to the retirement system. In the past five years, the Saudi government has taken significant steps to expand and constantly update pension systems, added Alibrahim, noting that pension systems worldwide seek to achieve many goals. The demographics have changed, he acknowledged, stressing that this requires a review of the pension mechanism and the retirement age.

from Asharq AL-awsat https://english.aawsat.com/home/article/4217631/saudi-banks-safe-troubled-us-banks