The Saudi Arabian Monetary Authority (SAMA) revealed that aggregate bank loans in Saudi Arabia accounted for 85.5% of deposits, According to its latest report for December 2015, the volume of bank deposits stood at 1,605 billion riyals, while the value of total loans reached 1,372 billion riyals.

In addition, the institution’s Deputy Governor, Abdulaziz bin Saleh Al-Fareeh, confirmed that SAMA had issued instructions allowing Saudi banks to exceed the loan-to-deposit ratio from the current 85% to 90%.

In an interview with Al Arabiya TV, Al-Fareej explained that this decision means “allowing the old ratio to be exceeded upward, rather than amending it in the regulations,” emphasizing the ability of Saudi banks to grant more loans and subscribe to government bonds.

Al-Fareej reassured the public that liquidity in Saudi banks remains strong, noting that this decision was issued in accordance with the Authority’s supervisory mandate, which “ensures a balance between economic growth and the liquidity flowing from banks to support economic activities.”