Allowing Banks to Continue Providing Finance Lease Activities

In the Name of Allah, the Most Gracious, the Most Merciful.

Saudi Central Bank (SAMA)
Head Office
Office of the Deputy Governor for Supervision

No.: 58934/67
Date: 1440/09/24 (Hijri)
Attachments: None

Circular

To the Respected,
Peace be upon you, and Allah's mercy and blessings.

Subject: Licensing Banks to Practice Finance Lease Activities.

With reference to the Bank's Circular No. 44480/67 dated 1440/07/14 (Hijri), which confirms the compliance of banks with the provisions of the Real Estate Financing and Finance Lease Systems, their executive regulations, and the related instructions; and in continuation of Circular No. 22129/67 dated 1440/04/09 (Hijri), which stipulates that banks may continue to practice finance lease activities until the issuance of specific instructions by the Bank, subject to obtaining no-objection letters from the Bank for launching related financing products in accordance with relevant systems, regulations, and instructions.

The Bank wishes to inform licensed banks that they may continue to practice finance lease activities without the need to renew their granted license for this activity or obtain a separate license, subject to obtaining no-objection letters from the Bank for launching related financing products in accordance with relevant systems, regulations, and instructions.

For information and compliance.

Yours sincerely,

Ahmed bin Abdulrahman Al-Khalifa Governor

Distribution Scope:
Banks operating in the Kingdom.

P.O. Box 2992, Riyadh 11169, Tel: 4662300 - Fax: 4662543