KSA no gold receipts, thus raising loan loss provisions
Posted by Ivo Cerckel on July 23rd, 2009
Banks used to have the right to issue receipts for the gold they held in reserve in warehouse.
This right was taken away from them by the institution of central banks. (1)
Gold sales are therefore down by 30% in the Kingdom of Saudi Arabia. (2)
And the Saudi banks have to raise the provisions
(reserves?
no, they cannot issue receipts for the gold they hold in reserve)
for bad for loan losses. (3) (4)
Ivo Cerckel
honestmoney@maktoob.com
http://twitter.com/ivocerckel/
NOTES
(1)
Roland Leuschel and Claus Vogt, “Das Greenspan Dossier, Wie die US-Notenbank das Weltwährungssystem gefährdet. Oder: Inflation um jeden Preis”, www.finanzbuchverlag.de, 2006, 3rd ed., p. 299
(2)
Saudi gold sales down 30%
Saudi Arabia: 2 hours, 48 minutes ago
http://www.ameinfo.com/204636.html
(3)
Saudi banks raise loan loss provisions
Saudi Arabia: 4 hours, 27 minutes ago
http://www.ameinfo.com/204612.html
(4)
Kingdom’s banks increase provisions for loan losses
Souhail Karam | Reuters
Thursday 23 July 2009 (30 Rajab 1430)
http://www.arabnews.com/?page=6§ion=0&article=124811&d=23&m=7&y=2009
If the link does not work, try
http://www.arabianbusiness.com/562730-saudi-banks-up-q2-loan-loss-provisions
SNIP
RIYADH: Two large Saudi banks sharply increased second-quarter provisions for loan losses compared to a year ago, official data showed on Wednesday, amid concerns over the solvency of some debt-laden private Saudi firms.
No related posts.
July 23rd, 2009 at 20:27
In the United Arab Emirates, it’s the central bank which decides about the provisions of “its” banks.
UAE central bank tells its banks to lift provisions sharply
by Stanley Carvalho on Thursday, 23 July 2009 http://www.arabianbusiness.com/562797-uae-central-bank-tells-its-banks-to-lift-provisions-sharply
SNIP
The UAE central bank has directed banks to take provisions up to 75 percent against their exposure to a pair of troubled Saudi firms over two years, bankers told Reuters on Thursday.