Saudi banks opt for short term loans

The Pak Banker - - Company& -

RIYADH: Saudi Ara­bia's banks have stepped up short term lend­ing at the ex­pense of ma­jor loans in the medium and long run and a large part of their credit ac­tiv­ity in­volves in­di­vid­u­als, the Gulf King­dom's largest bank said on Wed­nes­day.

In a study sent to Emi­rates 24/7, the Bank said the com­po­nents of credit in­volved real es­tate fi­nance, cars and equip­ment, and mis­cel­la­neous loans de­fined as 'Other'. The Real Es­tate cat­e­gory, ac­count­ing for 10.6 per cent of the to­tal, wit­nessed the largest ex­pan­sion of 28.2 per cent to SR 22 bil­lion in the third quar­ter, re­flect­ing a surge in de­mand on ris­ing prices, it said.

With a yearly mar­ket de­mand in ex­cess of SR60 bil­lion, con­sumer credit for au­to­mo­biles and equip­ments to­gether grew 7.4 per cent to SR41.5 bil­lion while other con­sumer loans in­creased by 7.7 per cent to SR134.3 bil­lion, with the share of the lat­ter in to­tal loan port­fo­lio grow­ing to 67.9 per cent in the third quar­ter, sug­gest­ing ex­pand­ing trade and re­lated sec­tors. -PB News

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