Saudi banks booked more provisions for bad loans during the third quarter but a veil of secrecy over the level of their exposure to troubled private firms is keeping investors guessing over their adequacy.
Stock exchange data showed that five Saudi banks booked more provisions for loan losses in the quarter, raising by at least 183 percent their total amount this year compared to the first nine months of 2008.
The provisions had been widely expected amid concerns over the solvency levels of heavily indebted Saudi conglomerates Saad Group and Ahmad Hamad Algosaibi & Bros which are at the centre of an estimated $22 billion debt implosion.
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