(Sukuk.net - Khaleej Times)  The rise in the volume of foreign deposits in Saudi banks indicates the robustness of the Kingdom's financial status, despite the current global stock market downturn, according to Hamad Al Sayyari, governor of the Saudi Arabian Monetary Agency (SAMA).

Al Sayyari disclosed that no Saudi banks are faced with liquidity problems, thus dispelling fears to investors.

"In fact, the guarantee given by the Supreme Economic Council for banks and deposits has increased confidence in the local banking sector, and several investors who used to take loans from banks abroad are now approaching Saudi banks," said Al Sayyari.

He further affirmed that the foreign assets of the kingdom are safe and managed in a conventional risk-free manner. The only impact made on foreign assets was the currency exchange rates, but this does not call for any change in the movement of assets.

He attributed the restrictions enforced by SAMA as the reason why Saudi banks are safe from the current turmoil facing banks the world over.

A week ago, SAMA pumped liquidity of up to $3 billion into the kingdom's domestic banks. At the same time, banks had a total of SR25 billion in deposits with SAMA, showing an excellent liquidity status and solvency. The Government spending rose above 19 percent over the past nine months, while the volume of bank loans rose 39 percent in the third quarter of this year," he said.

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