Insurance, Banking and Financial Supervision in the Kingdom of Saudi Arabia (KSA) – A Survey
18 Pages Posted: 7 Nov 2020
Date Written: October 8, 2016
Insurance, banking and financial supervision in Saudi Arabia is under the responsibility of the Central Bank of Saudi Arabia (which has the function of issuing the national currency, supervising banks, managing foreign exchange reserves, ensuring price and exchange rate stability, the soundness of the financial system and operating a number of cross-bank electronic financial systems) and the Capital Markets Authority of Saudi Arabia (who is regulating capital markets/the Saudi Stock Exchange by setting rules and making sure they are followed). The CMA is a government organization applying full financial, legal, and administrative independence, and has direct links with the Prime Minister.
The most important laws regulating the financial sector are the Capital Markets Law (CML) and Cooperative Insurance Law (CIL), which aim to achieve compliance with the International Organization of Securities Commissions (IOSCO) and the International Association of Insurance Supervisors (IAIS) principles. Another important law is the Capital Market Law (Royal Decree No. (M/30) dated 2/6/1424H), which formally brought into existence the Capital Market Authority (CMA) and the Banking Control Law (BCL).
Keywords: Banking, Insurance, Regulation and Supervision, Saudi Arabia
JEL Classification: E5, G21
Suggested Citation: Suggested Citation