Saudi banks’ liquidity improves in 2017 | ZAWYA MENA Edition

Saudi banks’ liquidity improves in 2017 | ZAWYA MENA Edition:

"Saudi banks’ domestic liquid assets ended 2017 at a record high SR457 billion, despite subdued deposit growth and challenging business conditions, a credit positive, Moody’s Investors Service said in its Sectoral Comment issued last Feb. 1. The report said the Saudi banks’ domestic liquid assets grew 11% in 2017 and equaled 20% of banks’ assets at year-end 2017 (versus 14% as of year-end 2015). Similarly, Saudi banks’ ratio of reserves to total deposits was 14.8% as of year-end 2017, its highest since year-end 2012. The positive trends were achieved amid muted 0.1% deposit growth in 2017 and was mainly driven by a contraction of 1.0% in banks’ loans and a 43% increase in the banks’ holdings of domestic government bonds."



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