Saudi Arabia: Financial System Stability Assessment

IMF Staff Country Reports, September 4, 2024

Source details

FSAP conducted against a backdrop of a robust economy driven by an ambitious state-led transformation agenda to accelerate Saudi Arabia’s economic diversification (Vision 2030).
The Kingdom’s sovereign wealth fund plays a key role in implementing and funding the economic transformation.
At present, financial sector risks from the rapid economic transformation appear contained.

Banks are well-capitalized, profitable and appear resilient to severe macroeconomic shocks.
Banks’ capacity to manage liquidity stress scenarios is generally good, although funding concentration is sizable.
Authorities have made commendable efforts to mitigate risks from the rapidly growing credit and real estate market.
Significant data gaps create challenges for systemic risk monitoring.

Strengthen systemic risk monitoring to address existing data gaps.
Enhance legal, institutional, and operational frameworks in support of financial stability going forward.

Subject areas: Anti-money laundering and combating the financing of terrorism (AML/CFT); Commercial banks; Crime; Financial institutions; Financial regulation and supervision; Financial sector policy and analysis; Financial sector stability; Macroprudential policy.
Keywords (as listed): Anti-money laundering and combating the financing of terrorism (AML/CFT), B. bank stress tests, Commercial banks, coverage ratio, Financial sector stability, Global, liquidation framework, liquidity stress scenario, Macroprudential policy, mission chief World Bank, World Bank FSAP team member.

Source: Saudi Arabia: Financial System Stability Assessment — IMF Staff Country Reports (landing page content).

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