In the wake of coronavirus pandemic, Saudi Central Bank said on Monday to be providing $13.3 billion (50 billion riyals) to boost liquidity in its banking sector and pave more ways to enable lending for financial institutions.
With lockdowns followed by a decline in oil prices, this stimulus decision was planned to work out for the restructuring of private-sector loans devoid of any additional charges. In a report by the Saudi Arabian Monetary Authority (SAMA), the data reflected a decline in consumer spending, with the point-of-sale transactions dwindling to 33%.
Despite that, as per SAMA, the banking sector saw assets leaping 14% to SR2.7 trillion in the Q1 of 2020.
The first three months of the year saw a rise of 12% in the credit facilities granted to the private sector, along with a growth of 18.6% in the average capital adequacy ratio and 201% in the liquidity coverage ratio. According to SAMA, these positive indicators reflect the importance of commercial banks in the economic development of the country. With the vision of Saudi Vision 2030, SAMA continues to support the banking sector.