What Influences Bank Lending in Saudi Arabia?

Determinants of bank-level credit growth in Saudi Arabia are investigated by applying a panel approach to data spanning 2000–15. Strong bank balance sheet conditions, economic activity, and oil prices support bank lending. Reduced bank concentration appears to have helped. Lending remained robust in...

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Bibliographic Details
Main Author: Miyajima, Ken
Format: eBook
Language:English
Published: Washington, D.C. International Monetary Fund 2017
Series:IMF Working Papers
Subjects:
Online Access:
Collection: International Monetary Fund - Collection details see MPG.ReNa
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245 0 0 |a What Influences Bank Lending in Saudi Arabia?  |c Ken Miyajima 
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300 |a 26 pages 
651 4 |a Saudi Arabia 
653 |a Depository Institutions 
653 |a Energy: Demand and Supply 
653 |a Economics 
653 |a Credit 
653 |a Asset requirements 
653 |a Oil prices 
653 |a Capital adequacy requirements 
653 |a Banks 
653 |a Finance 
653 |a Banks and banking 
653 |a Monetary economics 
653 |a Monetary Policy, Central Banking, and the Supply of Money and Credit: General 
653 |a Micro Finance Institutions 
653 |a Financial Institutions and Services: Government Policy and Regulation 
653 |a Mortgages 
653 |a Asset and liability management 
653 |a Money 
653 |a Liquidity 
653 |a Multiple or Simultaneous Equation Models: Models with Panel Data 
653 |a Banks and Banking 
653 |a Financial Markets and the Macroeconomy 
653 |a Prices 
653 |a Macroeconomics 
653 |a Financial regulation and supervision 
653 |a Bank credit 
653 |a Banking 
653 |a Money and Monetary Policy 
653 |a Portfolio Choice 
653 |a Financial services law & regulation 
653 |a Finance: General 
653 |a Investment Decisions 
653 |a Excess liquidity 
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520 |a Determinants of bank-level credit growth in Saudi Arabia are investigated by applying a panel approach to data spanning 2000–15. Strong bank balance sheet conditions, economic activity, and oil prices support bank lending. Reduced bank concentration appears to have helped. Lending remained robust in 2015 despite oil prices having declined, helped by strong bank balance sheets and a reduction in bank holdings of “excess liquidity”. To support bank lending in the period ahead, bank balance sheets need to remain strong. Fiscal adjustment and a reduced reliance on banks to finance the budget deficit would support credit provision to the private sector