The Quarterly Statement on Consumer Lending
No: 191000000045 Date(g): 16/5/1998 | Date(h): 20/1/1419 Reference the quarterly statement on consumer lending and based on what we have noted through our review of the previous period and inquiries from some banks, we wish to inform you that new controls have been established for this kind of lending. The statement has also been amended as per the attached amended form. We call on you to fill out the form with all accuracy in accordance with the following:
1. Definitions
1. Consumer Lending : Means loans to clients for purchasing tangible or intangible consumer goods (cars, furniture, real estate, medicines and the like) provided that they do not use these loans for commercial purposes and that repayment is in line with the borrower income. This does not include the financing of buying shares.
These loans are classified as follows :
1-1 Real estate loans (purchase, repair, furnishing et...)
1-2 Loans for purchasing cars, equipment and appliances.
1-3 Other personal loans, including all personal and consumer items that are not included in 1-1 and 1-2
2. Credit card loans : means the facilities granted through credit cards, excluding debit cards.
3. Loans to employees, which include :
3-1Loans to bank employees
3-1-1 Employees of high management
3-1-2 Other employees.
The employees of high management shall be defined according to the bank classification.
3-2Loans to the employees of private sector establishments and companies, as per specific agreements concluded by the bank and the private sector, whereby the salary of the employee is transferred to the bank, along with other procedures to guarantee repayment.
2. General Controls
The bank must provide SAMA, at the end of each fiscal year, of its policy regarding the calculation of doubtful personal and consumer loans, such as when is the loan considered doubtful and is written off.
The bank must classify as "doubtful' all personal and consumer facilities, credit card loans or employee loans that fall 180 days behind their maturity date and transfer the commission thereon to an outstanding account.
Before granting any such credit facilities the bank must make sure of the credit standing of the client through available means.
The statement must be submitted quarterly within 10 days from the date of its preparation.
3. Guarantees
- The bank may ask for any adequate guarantees it deems fit to protect its rights, in accordance with applicable rules and regulations.
PERSONAL & CONSUMER LOANS
AS OF ........................................
(All Amounts in, 000)
1997
1998
W/O
Provision
Non Performing Loans No. of Cust. Amount
Amount
No. of Customers
W/O
Provision
Non Performing Loans No. of Cust. Amount
Amount
No. of Customers
1Consumer Lending
1.1 Real Estate, Housing, Furniture etc
1.2 Cars & Other Equipment
1.3 Other Personal Loans
No. of Cards
2Credit Card Loans
==
2.1 Visa
==
2.2 Master Card
==
2.3 Others
No. of Customers
3Employees Loans
==
3.1 Bank's Staff (Senior Management)
==
3.2 Bank's Staff (others)
==
3.3 Corporate Staff Loan Packages
Total (3+2+1)
1997
1998
Amount
No. of Cust.
Amount
No. of Customers
Maturity Statement
Personal & Consumer Loans ( 1+2+3)
One year & Less
One Year - Three Years
Three Years & Above
Name ..............................
Title ..............................
Sig ...............................
Date ................................