Bulletin: External Sources To Play A More Prominent Role In Saudi Banks' Funding

DUBAI (S&P Global Ratings) June 6, 2024--Saudi Arabia's implementation of its Vision 2030 economic program is likely to fuel strong credit growth momentum in the country for the next few years. In S&P Global Ratings' view, deposits from the government and government-related entities (GRE) will continue to fund a large share of banking sector credit growth. However, we expect external funding to contribute a larger proportion of banks' overall funding sources. We therefore assess systemwide funding as having weakened. Consequently, we have revised the industry risk score in our Banking Industry Country Risk Assessment to '4' from '3'. Vision 2030: Four Scenarios For Saudi Arabia's Public Finances, May 6, 2024 Your Three Minutes In Saudi Vision 2030: Credit Implications For

...To From Economic risk 5 5 Economic resilience High risk High risk Economic imbalances Intermediate risk Intermediate risk Credit risk in the economy Intermediate risk Intermediate risk Industry risk 4 3 Institutional framework Intermediate risk Intermediate risk Competitive dynamics Intermediate risk Intermediate risk Systemwide funding Intermediate risk Low risk BICRA group 4 4 Government support Highly supportive Highly supportive...

Bulletin