Saudi cbank panel to examine Saad, Algosaibi
Riyadh, September 1, 2009
Saudi Arabia's central bank sees no risk to the country's banking system from two troubled conglomerates but it has set up a panel to examine the two and take appropriate action, the bank's governor said on Tuesday.
Banks in the region have been coping with the fallout from debt restructuring at Saad Group and Ahmad Hamad Algosaibi & Bros (AHAB).
'There is no systemic risk on Saudi banking system from the debts of the two firms, profitability however could be affected,' Muhammad Al-Jasser, governor of the Saudi Arabian Monetary Agency (Sama) said at a news conference.
'The government has set up a special committee to look into the two firms and take appropriate action.'-Reuters