Saudi Arabia: Financial System Stability Assessment

International Monetary Fund

No 2017/318, IMF Staff Country Reports from International Monetary Fund

Abstract: This paper assesses the stability of Saudi Arabia’s financial system as a whole. Banks—the core of the Saudi financial system—remain liquid and resilient. Stress tests show that most banks, including all systemically important banks, would be able to continue operating and meeting regulatory capital requirements in the event of additional severe economic shocks, characterized by oil prices falling substantially below current levels. Despite the recent liquidity challenges, all banks would also be able to cope with additional adverse liquidity shocks. The authorities’ ambitious agenda for improving macro- and microprudential financial sector oversight should be fully implemented and, in some cases, enhanced and further refined.

Keywords: ISCR; CR; banking system; price index; exchange rate; financial condition; risk profile; Sama manage liquidity; commercial bank; liquidity management framework; repo facility; EWS analysis; balance sheet composition; liquidity condition; funding strategy; asset quality; Sama strategy document; control department; Liquidity; Commercial banks; Liquidity management; Macroprudential policy; Financial sector stability; Global (search for similar items in EconPapers)
Pages: 36
Date: 2017-10-05
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Citations: View citations in EconPapers (3)

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