Abu Dhabi, UAEMonday 14 October 2019

Saudi Arabia's bank regulator imposes fines on 16 institutions for violations

Offences relate to payments made by consumers as percentage of their monthly incomes, the central bank says

Japan is the kingdom’s second largest source of foreign capital and third-largest trading partner. Bloomberg
Japan is the kingdom’s second largest source of foreign capital and third-largest trading partner. Bloomberg

Saudi Arabian Monetary Authority (Sama) has fined 16 financial institutions including the country’s top lender for "violating lending principles to individuals".

The regulator imposed penalties "in order to implement justice and transparency,” according to a statement on its website.

The move is part of the central bank’s efforts to ensure financial institutions comply with its directives to ensure the needs of all segments of the society are met, Sama said, without specifying an individual or the total size of the fines imposed.

The violations relate to payments made by consumers as percentage of their monthly incomes, Sama said.

“Sama calls upon the financial institutions under its supervision to fully comply with regulations and instructions, in a manner that does not affect the rights and interests of customers,” it said.

The entities fined include National Commercial Bank, Al Rajhi Bank, Emirates NBD, Banque Saudi Fransi, Riyad Bank, Bank Al Jazira, Alinma Bank, Samba Financial Group, Saudi Home Loans, Dar Al Tamleek, Abdul Latif Jameel United Finance, Saudi Fransi For Finance Leasing, Nayifat Finance, Murabaha Marina Financing, AlJabr Financing and Raya Financing, according to Sama's website.

Updated: May 20, 2019 11:39 AM

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