Banking Control Law

No bank may, for the benefit of any natural or legal person, extend a loan, grant credit facilities, provide securities or guarantees, or undertake any other financial obligations the aggregate amount of which exceeds 25% of the bank’s total reserves and its paid-up or invested capital. SAMA may, as public interest dictates and subject to conditions it specifies, raise the percentage up to 50%. The provisions of the preceding paragraph shall not apply to transactions Banking Control Law between banks, between a bank’s head office and its branches, or between branches.