Saudi Central Bank Governor Ayman Al-Sayyari confirmed that the banking system in the Kingdom is sound and able to withstand any future shocks.
Al Sayyari added in an interview with Al Arabiya TV that the capital adequacy ratio for Saudi banks is around 20% and liquidity coverage is around 180% as of the end of 2022.
“The NPL coverage rate is 147% and the Saudi banking sector is known for its strength, high capital efficiency, high liquidity and low NPLs,” Al Sayyari said. .
He pointed out that the capital adequacy ratio reached around 19.94% at the end of 2022, and the liquidity coverage ratio reached 180%, which is above the limit required by Basel, which is a benchmark that establishes control.
Al Sayyari noted that “Non-Performing Loans in the Saudi banking sector is 1.8% and the NPL coverage rate is 147%. The situation in the Saudi banking sector is encouraging and this increases its ability to absorb any crises that may arise in the future, and we were among the first banks to implement the Basel requirements.”
He stressed that the Central Bank of Saudi Arabia conducts periodic reviews with each bank separately to ensure the safety of capital and the adequacy of the level of liquidity.
