Saudi banks not hit by subprime crisis

NO IMPACT: Saudi banks have not been hit by the US subprime mortgage crisis, Al-Jasser has said.

Saudi banks have not been directly affected by the global subprime crisis because of conservative policies followed by the central bank, its vice governor said in comments published on Wednesday.

"There is no early effect from the real estate crisis since the central bank's policies are very conservative," Muhammed Al-Jasser was quoted as saying in the daily Asharq Al-Awsat while addressing a bank forum in Riyadh.

"We expect Saudi banks to move in the same direction of adopting conservative policies in their movements and management of business," he said, citing careful investments.

Gulf Arab officials, including central bankers, have repeatedly said the region's banks were largely shielded from the crisis triggered by defaults on subprime mortgages, or home loans for people with a poor credit history. (Reuters)

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