Riyadh – Mubasher: The implementation of new demands by the Basel III committee will impact Saudi banks, Al Iktisadia newspaper reported, citing SAMA’s deputy governor for supervision Ahmed Abdullah Al Alsheikh

The reason that the new regulations will not impact Saudi banks is that they have already begun implementing these standards several years ago and have not seen any repercussions on financing local economic projects, Al Alsheikh told the newspaper.

Saudi banks have exceeded the requirements by providing 100% liquidity coverage ahead of the specified grace period slated for 2018, the top official said.

SAMA has already been supervising the implementation of Basel III standards for banking sector liquidity since 2012, Alsheikh told the newspaper, noting that the liquidity coverage became obligatory in 2013.

The Saudi banking sector’s total assets amounted to around SAR 2.29 trillion by the end of the first quarter of 2017, while liquid assets amounted to around SAR 445 billion, he said.