Saudi Arabia’s central bank issues draft banking system for public consultation

Saudi Arabia’s central bank issues draft banking system for public consultation

RIYADH: Saudi Arabia’s is seeking the public’s views on a range of financial system reforms, including allowing institutions that grant credit to be classed as ‘banking businesses’. The new framework being proposed would also see the term apply to those outside the Kingdom who work with individuals inside Saudi Arabia, as determined by the Central Bank, for several purposes including customer protection. Another key change is the strengthening of the regulatory framework for the Deposit Protection Fund, so the fund pays deposits to depositors according to the declared coverage limit in cases that require this, in order to protect depositors and contribute to financial stability, according to the Saudi Press Agency. The public, interested parties, and specialists can register their opinions on the project through the National Competitiveness Center’s . The new banking system comes as a result of continuous internal assessments carried out by the central bank amid efforts to keep pace with the comparative legislative developments of a number of countries. The changes were also based on recommendations issued by international organizations. In addition to this, the new banking system also aims to stimulate investment in the sector, contribute to financial stability in the Kingdom, as well as