Deputy governor of the Saudi Arabian monetary agency (sama) said the international financial crisis will not have a great impact on the Saudi economy or on the Saudi financial institutions due to the fact that there are no direct investments in these international financial institutions which have witnessed strong problems in liquidity and investment. Dr Mohammed al-Jasser noted that the Saudi economy has never witnessed problems in liquidity, adding that growth within the last eight months rose by 21 percent compared to 18 percent last year. Moreover, he said deposits grew by more than 22 percent in the first eight months compared to the last year. In a statement to channel 1 last night, Dr al-Jasser said there is a plenty liquidity in the Saudi economy in a manner led to this growth and increase of lending process at the local market. Sama has the capability and means for dealing with any certain circumstance in liquidity, he said. He pointed out that sama has been continuously and accurately following up the developments at the market, and it is ready to make adequate liquidity available if the market requires that. He said all these means are available for the banks to obtain liquidity, and 'we have the mechanism for re-purchasing of liquidity not used by the banks. 'We are not facing any problem as regards liquidity in the Saudi economy, he said. As regards the situation in the Saudi stock market, he said 'I think the infection at the international stock market may have affected our stock market'. Dr al-Jasser reiterated that the deposits at the Saudi banks are in a secured situation adding that the Saudi banks and their financial base and loans exist in the Saudi economy. He noted that the rate of loans has amounted to 116 percent of the volume of deposits in the Saudi economy and added nothing can justify becoming afraid from the impact of the international financial crises on the deposits. He made it clear that sama will not allow endangering the deposits at the Saudi banks. Nothing can justify the existing fears in this respect, he concluded.
