Regulatory Alerts2020-07-22
Circular Re. Disclosure of Interest Rates on Financing and Savings Products
The Saudi Central Bank has updated its Disclosure Rules for Financing and Savings Products Rates to enhance market transparency regarding the Annual Percentage Rate (APR) and Annual Equivalent Rate (AER). The updated rules mandate that licensed banks and financing companies clearly disclose product-specific pricing, fees, and calculator tools on their websites and marketing materials, while replacing previous circulars with standardized disclosure tables for individuals and small/micro enterprises. Compliance is required within fifteen working days, ensuring that all advertised rates align with official calculations and clearly indicate whether they are illustrative or fixed based on consumer credit profiles.
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