Ensure that finance companies update their credit granting policies and procedures

Date: 1444/03/06
Reference No.: 44018254
Attachments:

Circular

To: Respected Companies,
Peace, mercy and blessings of God be upon you,

Subject: Ensuring that finance companies update their credit granting policies and procedures.

Based on the powers granted to the Saudi Central Bank under the Finance Companies Control System and its Executive Regulations, and in light of its role in safeguarding the soundness and stability of the financial sector;

the Saudi Central Bank emphasizes that finance companies update their credit granting policies and procedures to align with the rapid changes in the financing sector and the activities being financed, and implement appropriate precautionary measures to limit the rise of non-performing loans. Furthermore, finance companies must verify the existence of provisions and collateral commensurate with the risk level associated with their business activities.

For your information and necessary action.

Yours sincerely,
Yousef bin Ahmed Al-Sheikh
Deputy Governor for Supervision

Distribution Scope:

• Finance companies operating in the Kingdom.
• Crowdfunding entities licensed by the Saudi Central Bank.

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