Saudi cenbank governor says Aramco IPO not causing liquidity issues for banks

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Saudi Arabia’s central bank is monitoring banking indicators on a daily basis and is not seeing any impact on liquidity from Saudi Aramco’s initial public offering (IPO), the Kingdom’s central bank governor Ahmed al-Kholifey told a conference on Sunday.

His comments come as banks across Saudi Arabia offer leverage to retail investors looking to buy shares in Aramco’s upcoming IPO on the Saudi Stock Exchange (Tadawul).

“We are monitoring all indicators on a daily basis and if there is any squeeze on liquidity, definitely we’ll be injecting liquidity but so far... everything is assuring,” al-Kholifey added.

The governor added that the Kingdom’s banking sector has a high level of liquidity.

“The Saudi banking sector enjoys very high level of liquidity compared to Basel requirements,” al-Kholifey said.

In September, the governor had announced that he did not expect Aramco’s planned offering to have an impact on liquidity in Saudi Arabia’s banking sector as all financial indicators were healthy.

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