Licensing Banks to Engage in Real Estate Finance or Finance Leasing Activities
| No: 221290000067 | Date(g): 17/12/2018 | Date(h): 9/4/1440 | Status: Modified |
Translated Document
Based on the powers vested to SAMA under the Banking Control Law issued by Royal Decree No. (M/5) dated 22/2/1386 H, the Finance Companies Control Law issued by Royal Decree (M/51) dated 13/8/1433H and its Implementing Regulations, the Real Estate Finance Law issued by Royal Decree No. (M/50) dated 13/8/1433H and its Implementing Regulations, the Finance Lease Law issued by Royal Decree No. (M/48) dated 13/8/1433H and its Implementing Regulations, and further to SAMA Circular No. 341000082695 dated 3/7/1434 H containing the obligation to banks operating in the Kingdom to apply to SAMA for a license to conduct mortgage financing and leasing activities, and in reference to Circular No. 39100070455 dated 19/6/1439 H containing the procedural requirements for mortgage registration, I inform you of the following:
| First: | Licensed banks shall continue to practice real estate financing activity without the need to renew the license granted to them to practice real estate financing activity or obtain an independent license to do so, provided that letters of no objection are obtained from SAMA to offer the relevant financing products in accordance with the provisions of the relevant laws, regulations and instructions. |
| Second: | Licensed banks shall continue to practice financial leasing activity until SAMA's instructions are issued in this regard, provided that letters of no objection from SAMA are obtained to offer the relevant financing products in accordance with the provisions of the relevant laws, regulations and instructions. |