The Saudi Central Bank announced that the draft “draft amendments to the control system for finance companies” had been submitted for discussion.
The Central Bank called on the public, those interested and specialists to express their views and observations on the project, through the “Estisalah” platform of the National Competitiveness Center.
The amendment proposal comes from the competencies of the Saudi Central Bank in supervising and controlling the finance sector, and its continuous efforts to develop and support the growth of the sector, and to keep pace with global developments in the finance sector, according to the Saudi Press Agency “SPA”.
In addition to creating a thorough and adaptable regulatory framework that would support the sector’s stability and the accomplishment of the objectives of the Kingdom’s Vision 2030, the initiative intends to achieve growth and stability in the industry.
The Central Bank stated that the proposed changes would affect how a corporation conducts financing activities.
This results from the asset’s continued use to finance business operations as a joint stock company, with the Saudi Central Bank granting the right to exempt from this obligation in accordance with the legitimate justifications.
The proposed amendments also include granting the Central Bank the authority to prohibit finance companies from engaging in activities other than financing, as well as a proposal to change the rule that prohibits a member of one finance company’s board of directors from serving on the board of directors of another finance company that does not engage in the same activity. They also include a proposal to find a provision that would allow the bank. In the context of developing technologies and financial technology, the Saudi Central Bank is permitted to exclude some regulations.
The Central Bank announced that it would hear opinions and feedback within 30 days regarding the “proposed adjustments to the control system for financing companies.”
Keep in mind that every observation and observation will be studied. The draught can be viewed on the “Estisalah” platform of the National Competitiveness Center in order to approve the final version of the system.
The Saudi Central Bank makes the proposed changes to the system for controlling finance corporations available for debate.
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