Banking Control Law

SAMA may, if it is established that a bank has violated any of this Law’s provisions or the rules and resolutions issued for its implementation or has adopted a policy that might undermine its solvency or liquidity, take one or more of the following measures upon the approval of the Minister of Finance and National Economy: a) Appoint one consultant, or more, to advise the bank regarding the management of its business. b) Suspend or dismiss any of the bank’s board members or staff. c) Prohibit the bank from extending loans or receiving deposits or limit the same. d) Require the bank to take any other measures it deems necessary. If it is established that a bank continues to violate this Law’s provisions or the rules and resolutions issued for its implementation, SAMA may require the violating bank to provide justifications therefor along with a plan to rectify the Banking Control Law violation within a period determined by SAMA. If SAMA deems that the plan is not sufficient or if the bank fails to carry out a measure it pledged to carry out within said period, the Minister of Finance and National Economy may, upon approval of the Council of Ministers, revoke the bank’s license.