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Saudi lenders urged to increase capital reserves

May 29, 2014 2:12 am

Saudi Arabia has urged banks to raise capital reserves, which are already above those of global peers including JPMorgan Chase & Co and Citigroup Inc., to support lending growth, Bloomberg has reported. “Saudi Arabian Monetary Agency (Sama) continues to encourage Saudi banks to build up higher levels of capital adequacy,” Sama governor, Governor Fahad al-Mubarak, told the news service. “Banks should anticipate that current and future economic growth will lead to increased credit demand.” Lending in the kingdom is expected to increase more than 10% a year until 2017, according to Arqaam Capital.