The Saudi Central Bank (SAMA) said that it expected the new project to regulate the banking system in the country to expand the definition of banking business, include the granting of credits, and specify accurately the system objectives and scope.
In a statement on Thursday, SAMA said that one of the most important elements of the project was to strengthen the regulatory framework for the Deposit Protection Fund to protect depositors and contribute to financial stability.
The project also seeks to enhance the regulatory framework for banking secrecy in the Kingdom by following the confidentiality model as a general rule, with a variety of limited exceptional cases.
SAMA noted that the banking system project was put forward to keep abreast with developments and to ensure the continued stability and growth of the sector, stimulate investments, and contribute to financial stability in the Kingdom, in addition to strengthening the protection of depositors and customers.
The Central Bank added that it was seeking public feedback on the draft Banking Law, which aims to provide stability and growth in the sector.
It invited the public and stakeholders to share their views and comments on the draft law through National Competitiveness Center’s public consultation platform within 30 working days, SAMA statement read.
It added that the draft law was expected to continue regulating the banking sector as effectively as the current Banking Control Law.
Fahad Almubarak, governor of SAMA, explained in a statement that SAMA has worked on a set of initiatives during the last period, including the launching of the financial technology strategy after its approval by the Council of Ministers. The strategy seeks to make the Kingdom one of leaders in the field of financial technology and innovation.
