Saudi Arabia Seen Stepping Up Fight Against Bank Cash Crunch
- Kingdom takes measures to shore up economy amid low oil prices
- Banks face liquidity squeeze as government pulls deposits
Saudi Banks Face Liquidity Crunch
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Saudi Arabia may be embarking on a new phase in its efforts to stave off the worst of a cash crunch among its banks.
The kingdom’s central bank, known as SAMA, offered domestic lenders about 15 billion riyals ($4 billion) in short-term loans at a discounted rate at the end of June to help ease liquidity constraints, people familiar with the matter said on Sunday. The step came less than six months after SAMA allowed banks to lend a greater percentage of deposits.