Saudi Banks Beating JPMorgan Urged to Boost Capital: Arab Credit - Bloomberg

Saudi Banks Beating JPMorgan Urged to Boost Capital: Arab Credit - Bloomberg:



"Saudi Arabia is urging lenders to boost capital reserves, which are already above those of global peers including JPMorgan Chase & Co. and Citigroup Inc, to support lending growth.



Lending in the oil-rich country is expected to increase more than 10 percent a year until 2017, according to Arqaam Capital Ltd. National Commercial Bank this year raised $1.3 billion through bonds, making it the strongest start to a year for bank issuance since 2007, as Central Bank Governor Fahad Al Mubarak seeks higher capital ratios.



“Saudi Arabian Monetary Agency continues to encourage Saudi banks to build up higher levels of capital adequacy,” Al Mubarak said May 21 in response to e-mailed questions. “Banks should anticipate that current and future economic growth will lead to increased credit demand.”"



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