Saudi banks' lending falls amid solvency fears

Saudi banks' lending to the private sector fell for a third straight month in May, official data showed, amid growing concerns over the solvency of some family-owned firms and the local lenders' exposure to bad debts.

Bank claims on the private sector, a key indicator of lenders' confidence, stood at SR724.87 billion (Dh710bn) in May, their lowest level since August, showed the data published on the Saudi Arabian Monetary Agency's (Sama) website. Compared to April, bank claims on the private sector made in May their sharpest month-on-month drop since January.

At 7.6 per cent, their annual growth was the lowest in at least one year.