JEDDAH, 21 August — The Saudi Arabian Monetary Agency will launch on Sept. 1 a new system to tackle the errors caused by ATM transactions.

The new system, called CBS, aims to monitor the shortages that can sometimes result in accounts after money has been withdrawn from ATMs.

The company assigned to set up the new system will prepare monthly reports to SAMA.

The ATM network in Jeddah was not functioning on Sunday morning for about an hour due to a technical fault. Banking sources told Arab News that the fault did not however adversely effect any accounts.

Saudi banks regularly receive complaints from clients about shortfalls in their accounts after technical faults have rendered ATM machines inoperative. Such complaints are passed to SAMA, which is responsible for reimbursing the money.

There are more than 2,000 ATMs throughout the Kingdom.

The consolidated balance sheet of the 10 Saudi commercial banks has grown by six percent, exceeding SR440 billion, while total capital is in excess of SR50 billion, a report published last month said.

This healthy banking environment is the result mainly of the increase in oil prices, with per barrel prices averaging around $27 last year, compared to an average of $17 per barrel in 1999.

Meanwhile, stiff competition between Saudi banks has moved up a notch with the advent of online banking services.

Although still in its early stages, online banking is seen as the next step for banks in the Kingdom if they are to keep their heads above water alongside domestic and international competitors.

“We see it as a trend in the industry...we decided to introduce it, because if we didn’t others would and maybe take our customers,” Abdul Razzaq Al-Saleh, Internet banking manager at Arab National Bank, said in Riyadh recently.

Saudi banks will not only have to keep pace with their domestic rivals in this arena, but face a challenge from international heavyweights whose online capabilities will allow them to offer their services without needing a physical presence in the Kingdom. Internet banking in the Kingdom is still in its infancy and no services were locally available until last year.