The Capital Market Authority (CMA) and the Saudi Arabian Monetary Agency (SAMA) conducted a symposium on financial stability, sponsored by Ibrahim Bin Abdulaziz Al Assaf, Minister of Finance. A number of governmental and non-governmental bodies participated in the event as well as speakers from the International Monetary Fund, The International Organization of Securities Commissions (IOSCO). Bank and risk managers, as well as representatives of insurance, finance and investment companies also attended. The symposium focused on discussing the challenges and opportunities facing the financial system in the Kingdom through three major themes which are: financial stability policies, the role of financial stability in strengthening macroeconomic growth, and the importance of achieving balance between financial stability and economic growth. In his speech, Al Assaf said the Kingdom is facing national and international financial and economical challenges in a strong position. He also emphasized that challenges create opportunities, citing the eighties and nineties where the Kingdom faced economic challenges that created opportunities for privatization and restructuring the economy. It also motivated people to change and lead. He described the challenges facing the Kingdom now are much more complicated and diverse, not only on the economic side but on the geopolitical and international side as well, since Saudi Arabia is much more financially connected to the world right now and it has a very recognized and important role in stabilizing the region. Al Assaf emphasized that it was able to reduce the frequency of the low reserves and maintain stability in spite of the continuing decline in oil prices for more than two years and that the banking system in the Kingdom still has strong balance sheets and solid safety financial indicators at a time when the level of debt is still low with high reserves. Financial institutions in the Kingdom are still continuing to maintain flexibility, as banks continue to enjoy relatively high levels of capital adequacy and liquidity ratios, despite some pressure on liquidity in general. The procedures taken into place by government entities to maintain their roles and achieve the vision of 20130 and the national transformation program are praised by Al Assaf. As those procedures helped in releasing the pressure on our economic growth such as the measures and procedures taken by the Ministry of Finance and SAMA to support the economy as well as the fiscal consolidation procedures done recently by the government which are expected to ease pressure on the government deficit. Dr. Ahmed Al-Kholifey, Governor of the Saudi Monetary Agency (SAMA) and Mohammed Abdullah Aljadaan, Chairman of the Capital Market Authority thanked the participants for enriching the symposium with effective debate on financial stability in the Kingdom. — SG
