Riyadh: The Saudi Central Bank (SAMA) has announced the release of the updated Implementing Regulation of the Finance Companies Control Law. This update is a part of SAMA's ongoing supervisory and regulatory responsibilities over the finance sector, aiming to enhance the sector's stability and promote growth.
According to Saudi Press Agency, the updated regulations focus on establishing requirements for all financing activities. Key updates include revisions to the aggregate finance amount that finance companies can offer, modifications to the bank guarantees for licensing applications, updates to provisions concerning related parties, and guidelines for addressing the expiration of licenses granted to finance companies.
The new regulations also repeal the existing Rules Regulating Consumer Microfinance Companies and the Rules of Engaging in Microfinance Activity. Additionally, they introduce amendments to the Rules of Licensing Finance Support Activities.
SAMA had previously released a draft of the updated regulations for public and expert consultation. The feedback received was meticulously reviewed and incorporated into the final version. For further details and to access the full updated regulations, interested parties can visit SAMA's official website.