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Asharq Al-Awsat
Asharq Al-Awsat
Business
Riyadh - Asharq Al-Awsat

Interest Rates Put Pressure on Lending, Limit the Liquidity of the Saudi Financial Market

Saudi banks for the need to provide new financing liquidity to meet the needs of the lending market in the Saudi economy (AFP)

Financial specialists attributed features of liquidity scarcity in the Saudi financial and banking sector to the effects of raising interest rates and increasing the Saudi Interbank Offered Rate, or Saibor, along with the emergence of attractive investment opportunities.

According to specialists, the interest rates rose in parallel with the decline in banks’ possession of bonds, which appears as a factor in the slowdown in lending and the decrease in internal liquidity.

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