The Unassuming Economist

From the IMF’s latest report on Saudi Arabia:

“Mortgage lending has continued to grow rapidly as government programs have supported housing demand and supply (…). Retail mortgage lending has more than doubled over the past two years to around 18 percent of total bank credit. SAMA and staff agreed that risks to banks still appear limited given debt service limits on borrowers, the low average loan-to-value ratio, and the fact that most repayments are made by salary assignment from borrowers employed in the public sector. Nevertheless, risks need to be carefully monitored and SAMA stressed that they carefully monitor banks and have surveillance systems in place to identify any build-up of vulnerabilities to inform macroprudential policy.”