SCSB empowers nonprofit sector to lend productive families

Labor and Social Development Minister Mufrej Al-Haqabani chairs the third meeting of the board of directors of Saudi Credit and Saving Bank.

The Saudi Credit and Saving Bank (SCSB), at the third meeting of the board of directors chaired by Minister of Labor and Social Development Mufrej Al-Haqabani, discussed the roadmap for its strategy in keeping with National Transformation Program 2020 and Vision 2030.
The meeting held in Riyadh also considered a number of issues, including the activation of the leadership’s vision for the bank as well as the formation of a national committee in saving.
At the meeting, the members reviewed the Tamkeen initiative, which aims to empower the nonprofit sector to run loan portfolios and lending to support productive families through setting up development funding units in charitable foundations.
They also addressed the need to establish partnerships between the bank, the Ministry of Labor and Social Development, the Human Resources Development Fund and the non-profit sector, including Sulaiman Al-Rajhi Charitable Foundation, with the aim of improving their capabilities in this respect.
Meanwhile, the initiative is stated to be in sync with the Kingdom’s Vision 2030 to turn beneficiaries of social security assistance into productive members who contribute to the economic growth.
The members reviewed the report on portfolio performance for Q2, 2016 to explore efforts that are in a bid to raise effectiveness of lending and loan collection, and also made recommendations for the bank’s allocations.
The board of directors agreed on amending stipulations relating to loans for social purposes after they have been studied as well as reviewed regulations for products that target new categories with dire needs and low-income individuals.
Regarding the saving sector, it was directed to support the new formed committee that is tasked to promote saving and thrift by individuals and institutions in the Kingdom and assist low-income individuals to raise their income, in addition to encourage initiatives on saving that fit various segments of society and spread awareness on financial planning.