RIYADH, 12 December 2002 — Total assets of Saudi commercial banks rose 7.3 percent to $133.9 billion at the end of last October compared to $124.8 billion a year ago, the Saudi Arabian Monetary Agency (SAMA) reported yesterday.
The assets of the 10 commercial banks increased by 0.4 percent at the end of October over the previous month as money supply in the domestic market continued to be high. Liquidity reached $98.1 billion at the end of October, up 4.5 percent on September’s $93.9 billion, the central bank reported in its monthly statistics.
Money supply is up 11.4 percent on its level at the end of last year of $88.1 billion, the report said. Liquidity continued to increase during the past 12 months as economic reports spoke of fund repatriation following the Sept. 11, 2001 terror attacks and of fewer funds leaving the Kingdom. The growth of assets was due to a sharp rise in bank claims on the private sector. Most of the banks are held by the private sector but the government also has sizeable stakes.
Total bank assets were $127.9 billion at the end of the first quarter this year, and $131.9 billion at the end of the second quarter, up on the $126 billion at the end of 2001.
Commercial bank claims on the government sector rose slightly to $34.6 billion from $34.2 billion on Sept. 30, after declining from $36.2 billion at the end of last year. The government uses bank credit to partially meet its debt which reached a staggering $168 billion at the end of last year. The remaining part is financed by two public pension funds.
Claims on the private sector continued an upward trend rising 1.3 percent at the end of October to $56.6 billion over its September level. These claims surged 14.8 percent from $48.7 billion at the end of the third quarter last year to $55.9 billion this year, mainly due to an increase in borrowing as a result of low interest rates.
Deposits rose 4.4 percent on Oct. 31 to $85 billion from $81.4 billion at the end of September when it surged 11.5 percent from $73.0 billion a year ago.
