137.3 billion riyals net lending by banks to the private sector in the Kingdom within 5 months

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The private sector continued borrowing from banks operating in Saudi Arabia, reaching 137.34 billion riyals from the beginning of the year until last May, an increase of 43.2 percent over net lending for the same period last year, which amounted to 95.88 billion riyals.
Thus, the total volume of bank credit to the private sector at the end of last May amounted to about 1.841 trillion riyals, compared to about 1.703 trillion riyals at the end of last year 2020, to record credit growth since the beginning of the year by about 8.1 percent.
According to the analysis of the reports unit in the newspaper “Al-Eqtisadiah” based on the data of the Saudi Central Bank “SAMA”, the volume of bank credit to the private sector in Saudi Arabia recorded a growth for the 23rd month in a row.
In May, the volume of credit to the private sector rose on an annual basis by 16 percent, recording the highest growth rate since October 2014, which coincides with a clear decline in interest rates.
And the interbank interest rate “SIBOR”, as in last May, was at 0.79 percent, which is among the lowest level in nearly five years, while interest rates in May 2020 were at 1.13 percent, and thus interbank interest rates declined during the period between April 2020 and April 2021 by 34 basis points.
While banks’ investments in private securities amounted to about 63.64 billion riyals at the end of last May, compared to about 62.05 billion riyals for the same period last year, bringing the total liabilities of banks from the private sector to about 1.90 trillion riyals.
During the past year 2020, banks were able to record the highest growth in credit to the private sector in about seven years, after recording a growth of about 14.3 percent, so that credit operations continued to grow for the third year in a row.
In addition, bank deposits at the end of last May exceeded the level of two trillion riyals, for the first time ever, to record an annual growth of about 7.5 percent, while recording a growth of about 3 percent since the beginning of this year.
Thus, we find that the private sector lending rate of total bank deposits is 92 percent, compared to 85.2 percent for the same period last year.
Economic Reporting Unit





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