Saudi Arabia Said to Ease Bank Loan Rules to Boost Liquidity - Bloomberg Business

Saudi Arabia Said to Ease Bank Loan Rules to Boost Liquidity - Bloomberg Business:

"Saudi Arabia is easing rules on bank lending to stimulate growth in the largest Arab economy, two people with knowledge of the matter said.
Banks were told they can lend the equivalent of 90 percent of their deposits, up from an earlier limit of 85 percent, by the Saudi Arabian Monetary Agency on Sunday, the people said, asking not to be identified as the information is private. The move followed a request from the country’s committee of treasurers to help ease liquidity constraints, according to one of the people.
Saudi Arabia is seeking to revive its economy and stimulate credit after the slump in oil and government spending strained the banking system. The three-month Saudi Arabia Interbank rate rose to 1.73 percent on Feb. 3, its highest in about seven years, according to data compiled by Bloomberg. Bets for a devaluation of the riyal reached their highest in about two decades in January, even after the country pledged to keep its currency peg."



'via Blog this'