Saudi banks’ lending growth to pick up pace in 2018 | GulfNews.com

Saudi banks’ lending growth to pick up pace in 2018 | GulfNews.com:

"Saudi Arabia’s banking sector is expected to report improved lending growth in the next two years driven by higher government spending and recovering oil prices, but the rising interest rates could become a damper in the expected credit growth, according to analysts The Saudi Arabian Monetary Authority (SAMA) raised its benchmark repo (lending) and reverse repo (deposit) rates on last week. Both benchmark rates were increased by 25 basis points (bps), bringing the repo rate to 2.25 per cent and the reverse repo rate to 1.75 per cent. The rate hikes ahead of the anticipated Fed rate hike this month points to SAMA’s plans to keep the rates in tandem with the US rates is expected to keep the credit growth low despite ample liquidity in the system."



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