Banking Control Law

SAMA may, upon the approval of the Minister of Finance and National Economy, set general rules to regulate the following: 1. The maximum limit of total loans that a bank or banks may extend. 2. The prohibition or limiting of certain types of loans or other transactions. 3. The terms and conditions that a bank must observe when carrying out certain types of transactions with its clients. 4. Cash margins that a bank must retain against certain types of credits or guarantees. 5. The minimum ratio between loan amounts and assets provided as security that must be observed with regard to certain types of loans. 6. The assets a bank must retain in the Kingdom. The value of such assets shall not fall below a certain percentage of the deposit liabilities determined by SAMA. SAMA may issue decisions regarding: 1. the definition of the term "deposit liabilities" in this Law; and 2. the determination of bank holidays and business hours. Banking Control Law