Capital Infusion To Allow Banks To Increase Lending Activities
News: New capital infusion would allow Saudi banks to expand their lending activities and avoid breach of the credit concentration requirements under the banking control law of 1966. The majority of banks in Saudi Arabia are raising their capital by as much as 100%. Banks are seeking to lower their loans-to-deposits ratio, which reached 83.1 in August 2013, in accordance with the guidelines provided by Saudi Arabian Monetary Agency (SAMA). SAMA's policies have proved to be beneficial in guiding the lenders through the financial crisis and reaching new feats, according to a report published by the National Commercial Bank.