By Shane McGinley
SAMA chief Mohammad Al Jasser said banks had sufficient provisions to shield against bad loans
Arabia has not bailed out any of its banks or financial institutions and has no
plans to do so, the governor of Saudi Arabian Monetary Agency said on Monday.
Arabia is one of the very few countries in the world that did not need at all
to bail out our financial institutions or even try and go to clean up their
portfolios," Mohammad Al Jasser said on the sidelines of an event in
didn't need to do any of that because we acted counter-cyclically before the
crisis hit and I promise to keep it that way.”
banks in the Arab world’s largest economy posted solid fourth quarter results,
with several above analysts’ average forecasts after booking provisions in the
Jasser last week said that Saudi banks had taken enough measures to shield
themselves against bad loans and said there was no need to raise provisions.
clear that when bad loans go down, then provisions go down as well so banks
undertook less ... in the fourth quarter," Al Jasser told Saudi-owned Al
have taken enough... to tackle any situation now," he said, adding that he
saw no need for "big" provisions.
said in October that provisions for bad loans should exceed 100 percent of the
banking sector of the world's largest oil exporter has been hit by debt
restructuring in family-owned businesses in the past.
a result, lending growth stalled in December 2009 but it has been picking up
slowly over the past few months.