The Banking Executive Magazine - September 2023 Issue

Arab Banking Conference 2023 H.E. MR. AYMAN BIN MOHAMMED AL-SAYARI, GOVERNOR, CENTRAL BANK OF KSA H.E. Mr. Ayman bin Mohammed Al- Sayari emphasized that the FinTech strategy aims to achieve the desired economic impact, as it targets in- creasing FinTech companies to 525. “The FinTech strategy will contribute to creating 18,000 specialized jobs, as well as contributing to the gross domestic product (GDP) by an amount exceeding SR13 billion by 2030. The Saudi financial sector has been supportive of economic growth in Saudi Arabia, as financial institu- tions have worked to expand the scope of their services to include all private and individual borrowers from the sector.” He indicated that the number of Fin- Tech companies exceeded 200 com- panies by the end of last month. He pointed out that the Saudi economy recorded a growth of 8.7 percent in 2022, exceeding the global average of 3.5 percent. H.E. Mr. Ayman bin Mohammed Al- Sayari said that the capital adequacy ratio (CAR) in the Saudi financial sec- tor reached 20.1 percent by the end of the second quarter of 2023. He noted that the Saudi Arabian banking system enjoys solid performance in- dicators, as the liquidity coverage ratio (LCR) reached 188.3 percent by the end of the second quarter while the net stable funding ratio (NSFR) stood at 115 percent. He pointed out that the private sector continues to support the Kingdom's economic growth, noting that non- oil activities grew by 5.4 and 5.5 per- cent in the first and second quarters of this year respectively. H.E. Mr. Ayman bin Mohammed Al- Sayari stated that Saudi banks ex- panded their lending activity to meet the continuing demand for bank credit while risk results remained moderate. This reflects the strength of the local economy, and in this con- text, credit increased 10.2 percent in the second quarter on an annual basis. He pointed out that as global challenges continue, SAMA contin- ues to monitor local and global de- velopments to maintain the stability and strength of the financial system. He said that SAMA paid great atten- tion to the banking system due to its central role in the economy, as all precautionary ratios for the banking system exceeded the ratios specified in Basel requirements. “This reflects a banking system with strong per- formance indicators,” he added. the BANKING EXECUTIVE 36 ISSUE 177 SEPTEMBER 2023 KEYNOTE SPEECHES