‎“Fitch”: Liquidity conditions in Saudi banks will remain ‎reasonable in 2024‎

A report by Fitch Credit Rating Agency said that liquidity in Saudi banks was supported by an increase in deposit flows received from government-related entities, as deposits grew by 147 billion riyals, 23% in the 12 months until the end of October 2023, and represented 70% of the total deposit flows in this period.

The agency added that liquidity pressure in Saudi banks moderated in 2023, expecting liquidity conditions to remain reasonable in 2024.

Earlier, the monthly statistical report of the Saudi Central Bank “SAMA” for November reported an increase in the volume of bank deposits by 7.5%, with a value equivalent to 171.4 billion riyals on an annual basis, rising to 2460.3 billion riyals compared to 2288.9 billion riyals at the end of November 2022. This increase is a result of the increase in time and savings deposits by a value of 202.9 billion riyals, a growth of 31.9%, as well as an increase in the balance of demand deposits, but by a slight rate of 0.4%, equivalent to 4.9 billion riyals, at a time when current deposits declined by 11.2%, with a value of 36.4 billion riyals, falling to 288.2 billion riyals, compared to 324.6 billion riyals in November 2022.