Saudi Arabian Monetary Authority (Sama) has fined 16 financial institutions including the country’s largest banks for violating lending principles to individuals. According to the central bank, the main reason for imposing the fine was to implement principles of justice and transparency. It also ensures that institutions must act in accordance with responsible finance that should meet with the actual needs of all segments of the society. However, it didn’t provide complete details of the fines. Moreover, it also claims that “Sama calls upon the financial institutions under its supervision to fully comply with regulations and instructions, in a manner that does not affect the rights and interests of customers”.
The central bank said violations associated with individuals were made to pay from their monthly income when obtaining financing. The penalized lenders include Al Rajhi Bank, National Commercial Bank (NCB), Riyad Bank, Aljazira Bank, Alinma Bank, Samba Financial Group, Emirates NBD, Saudi Home Loans, Dar AlTamleek, Abdul Latif Jameel Finance, Saudi Fransi Leasing, Nayifat, Morabaha Marina, Aljabr Financing and Raya Financing. The decision aims to sustain the principals of responsible financing for individuals, taking into consideration the financial burdens of all segments of society, and ensuring fair competition among financing firms.