IMF Staff Country Reports

Saudi Arabia: Financial Sector Assessment Program-Financial System Stability Assessment

September 4, 2024

Download PDF More Formats on IMF eLibrary Order a Print Copy
More formats on IMF eLibrary Order a Print Copy

Preview Citation

Format: Chicago

International Monetary Fund. Monetary and Capital Markets Department "Saudi Arabia: Financial Sector Assessment Program-Financial System Stability Assessment", IMF Staff Country Reports 2024, 281 (2024), accessed December 25, 2024, https://doi.org/10.5089/9798400288074.002

Export Citation

  • ProCite
  • RefWorks
  • Reference Manager
  • BibTex
  • Zotero
  • EndNote

Summary

This paper highlights Saudi Arabia’s Financial System Stability Assessment as part of Financial Sector Assessment Program (FSAP). The FSAP took place against the backdrop of a robust economy driven by an ambitious state-led transformation agenda to accelerate Saudi Arabia’s economic diversification (Vision 2030). The Kingdom’s sovereign wealth fund plays a key role in implementing and funding the economic transformation. At present, financial sector risks from the rapid economic transformation appear contained. Banks are well-capitalized, profitable and appear resilient to severe macroeconomic shocks. Banks’ capacity to manage liquidity stress scenarios is generally good, although funding concentration is sizable. The authorities have made commendable efforts to mitigate risks from the rapidly growing credit and real estate market, but significant data gaps create challenges for systemic risk monitoring. The time is right to strengthen systemic risk monitoring and the legal, institutional, and operational frameworks in support of financial stability going forward.

Subject: Anti-money laundering and combating the financing of terrorism (AML/CFT), Commercial banks, Crime, Financial institutions, Financial regulation and supervision, Financial sector policy and analysis, Financial sector stability, Macroprudential policy

Keywords: Anti-money laundering and combating the financing of terrorism (AML/CFT), B. bank stress tests, Commercial banks, Coverage ratio, Financial sector stability, Global, Liquidation framework, Liquidity stress scenario, Macroprudential policy, Mission chief World Bank, World Bank FSAP team member

Publication Details

You May Also Be Interested In...

Vulnerabilities and Risks in Denmark’s Nonbank Financial Institutions: Denmark

December 24, 2024

Central Bank Stress Testing—Guidance Note

December 23, 2024

Industrial Policy and State Ownership: How Do Commercial Banks Allocate Credit in China?

December 23, 2024

Chinese Housing Market Sentiment Index: A Generative AI Approach and An Application to Monetary Policy Transmission

December 23, 2024