Saudi Banks Safe from Troubled US Banks

The Saudi Minister of Economy and Planning participates at the Financial Sector Conference in Riyadh (Asharq Al-Awsat)
The Saudi Minister of Economy and Planning participates at the Financial Sector Conference in Riyadh (Asharq Al-Awsat)
TT
20

Saudi Banks Safe from Troubled US Banks

The Saudi Minister of Economy and Planning participates at the Financial Sector Conference in Riyadh (Asharq Al-Awsat)
The Saudi Minister of Economy and Planning participates at the Financial Sector Conference in Riyadh (Asharq Al-Awsat)

Ayman Al-Sayari, Governor of Saudi Central Bank (SAMA), ruled out any transactions between Saudi banks and troubled US banks, affirming that the Kingdom’s banking sector enjoys capital adequacy and reassuring liquidity.

Al-Sayari spoke with Al-Arabiya TV on the sidelines of the Financial Sector Conference in Riyadh when he added that the Kingdom fully believes in the partnership between SAMA and the Financial Sector Development Program.

He noted that the partnership will achieve Saudi Arabia’s Vision 2030 goals by supporting the growth and sustainability of the local economy while preserving the stability and durability of the Kingdom’s financial sector.

Al-Sayari asserted that Saudi Arabia will “continue to move forward.”

He affirmed that the Kingdom would hold the Financial Sector Conference’s third edition as it can catalyze the economy and attract investments, achieving government aspirations.

In his closing speech at the Conference, Al-Sayari asserted that the gathering, directly and indirectly, impacted developing capabilities by exchanging expertise, discussing challenges, and finding ways to overcome them.

Al-Sayari highlighted the broad participation at the conference, adding that it included several local and international financial industry leaders and experts.

Participants, according to Al-Sayari, held several sessions during which they exchanged expertise and reviewed the best international practices.

Moreover, discussions tackled regulation, legislation, and challenges.

Al-Sayari said SAMA and its partners in the Financial Sector Development Program would continue to empower institutions, support the growth of the private sector and the national economy, diversify sources of income, and stimulate savings, financing, and investment.

Saudi Arabia is also working to ensure the retirement system is sustainable, inexpensive, and fair through improving procedures and regulations, said Faisal Alibrahim, Minister of Economy and Planning.

In a panel discussion at the Financial Sector Conference, the minister added that the Kingdom is keen to be proactive to ensure the development of policies aimed at addressing the rise in life expectancy and its consequences in terms of retirement.

Alibrahim indicated that Saudi Arabia is one of the young countries. Still, it is working to address these challenges, noting that the country was also keen to be more flexible with the General Organization for Social Insurance (GOSI) and made several changes to the retirement system.

In the past five years, the Saudi government has taken significant steps to expand and constantly update pension systems, added Alibrahim, noting that pension systems worldwide seek to achieve many goals.

The demographics have changed, he acknowledged, stressing that this requires a review of the pension mechanism and the retirement age.



Trump's Baseline Tariff Plays to Türkiye’s Advantage, Vice President Says

Türkiye's Vice President Cevdet Yilmaz speaks during a press conference to unveil a savings measures package in Ankara, Türkiye, May 13, 2024. REUTERS/Umit Bektas/File Photo
Türkiye's Vice President Cevdet Yilmaz speaks during a press conference to unveil a savings measures package in Ankara, Türkiye, May 13, 2024. REUTERS/Umit Bektas/File Photo
TT
20

Trump's Baseline Tariff Plays to Türkiye’s Advantage, Vice President Says

Türkiye's Vice President Cevdet Yilmaz speaks during a press conference to unveil a savings measures package in Ankara, Türkiye, May 13, 2024. REUTERS/Umit Bektas/File Photo
Türkiye's Vice President Cevdet Yilmaz speaks during a press conference to unveil a savings measures package in Ankara, Türkiye, May 13, 2024. REUTERS/Umit Bektas/File Photo

The relatively low 10% baseline tariff that the United States has applied to Türkiye could favor Turkish exporters, Türkiye's vice president told broadcaster CNN Turk on Saturday.
Along with the baseline tariff that took effect on Saturday, US President Donald Trump has announced higher levies on goods from 57 larger partners including China, European Union, Vietnam and Japan that are due to start next week.
The decision not to impose such levies on Türkiye "seems to be to our advantage as of now, for access to the American market", Vice President Cevdet Yilmaz told CNN Turk.
"There were already tariffs on iron, steel and aluminium (exports from Türkiye to the US). When (the US) imposed similar tariffs on the others, there was an equalization there, it was in our favour," he added.
Yilmaz said that as an importer, Türkiye would also benefit from a drop in international commodity prices, including oil, following Trump's announcement.
Türkiye's Trade Minister Omer Bolat said on Friday that the Turkish government wanted to negotiate with the US to lift the 10% in new tariffs.
He called them the "best of the worst", given higher tariffs on many other countries.