Friday, 27 January 2012

Mixed bag - Zawya

Unlike the global financial services industry, the Saudi banking sector remains in great shape and it is only expected to go from strength to strength as the government continues to support the economy.

While the Kingdom's financial services industry weathered the global financial crisis in 2008 with great wherewithal, it was the two high-profile bankruptcies in 2009 that had a more pronounced impact on the system, since these led banks to examine their portfolios more closely, and where necessary to help clients to restructure their debt profiles.

"As part of this process, clients became more reticent about taking on fresh debt and the 2009-10 period was one of weak lending growth," says Keith Savard, Chief Economist, at Samba Financial Group.

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