Global crisis still in full swing- Saudi central bank head

BLEAK TIMES: Last Saturday, King Abdullah promoted Al Jasser, vice governor of SAMA since 1995, to the post of governor.

The new head of Saudi Arabia’s central bank feels that the financial fallout from the global economic crisis is still in full swing and has not reached an end yet.

Speaking in an interview to CNBC-Arabiya, Governor of the Saudi Arabian Monetary Agency (SAMA), Dr. Mohammed Al Jasser said that the banks in the Kingdom of Saudi Arabia are a shelter in the financial storm that has hit world markets due to the current global economic crisis.

However Al Jasser is confident that the impact of the global economic crisis on the Kingdom’s financial sector will not affect the banks and their liquidity or ability to achieve profit.

The Kingdom’s Arab banking sector is unaffected because the vast majority of its investments and transactions are internal, Al Jasser said. Saudi banks’ dealings hinge upon local rather than external factors, he added.

The SAMA chief asserted that the Kingdom’s government expenditure remains stable and its 2009 budget will allow the Kingdom to continue national projects.

“SAMA will build upon what the institution already has achieved, especially in regard to the Kingdom’s financial stability,” said Al Jasser, noting that “115% of local Saudi bank deposit funds are used within the Kingdom.”

Last Saturday, Saudi Arabia’s King Abdullah promoted Al Jasser, vice governor of the Saudi Arabian Monetary Agency (SAMA) since 1995, to the post of governor, replacing Hamad Saud Al Sayyari, who was at the helm since 1983.

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