Ensure that Finance Companies Update their Credit Granting Policies and Procedures
| No: 44018254 | Date(g): 1/10/2022 | Date(h): 6/3/1444 | Status: In-Force |
Translated Document
Based on the powers granted to SAMA under the Finance Companies Control Law and its implementing regulations, and in line with its role in maintaining the safety and stability of the financial sector.
SAMA emphasizes that finance companies must update their credit policies and procedures to align with the rapidly evolving conditions in the financing sector and the activities being financed. Companies should implement appropriate precautionary measures to mitigate the rise in non-performing loans. Additionally, finance companies must ensure that provisions and guarantees are adequate relative to the risk levels associated with their operations.