The new mortgage law that is likely to be announced this year is expected to become a major driver of credit growth in Saudi Arabia's banking sector that is slowly recovering from the impact of global financial crisis, said Credit Suisse Analysts.
"The largest beneficiaries of the growth in the mortgage business will be the banks with highest exposure to the retail segment. Al Rajhi Bank, Arab National Bank and Riyad Bank are the leading consumer lenders in Saudi Arabia with the combined market share of about 55 per cent and largest number of branches," said Mohammad Hawa, analyst with Credit Suisse.
Bank credit to private sector excluding investments in securities, expanded 6.4 per cent in April, edging lower from growth of 6.5 per cent a month earlier, which had been the highest since May 2009. The pace of month on month expansion in private credit also decelerated.
No comments:
Post a Comment