Gulf Central Banks partially Follow Fed

The video discusses the Saudi Central Bank's monetary policy decisions, particularly its divergence from the US Federal Reserve's rate hikes. It explores the implications of this divergence, including risks and opportunities for local banks. The discussion highlights the impact of interest rate changes on Saudi banks, their strategies to manage liquidity, and their resilience to potential global economic downturns. Additionally, the video examines the influence of high oil prices on economic growth and the banking sector's profitability.

What has been the recent premium of the Saudi interbank rate over LIBOR?

• 60 basis points

• 100 basis points

• 40 basis points

• 80 basis points

How are Saudi banks positioned globally in terms of gearing to higher rates?

• Neutrally geared

• Not affected

• Positively geared

• Negatively geared

What is the expected net interest margin expansion for Saudi banks?

• 30 bips

• 45 bips

• 75 bips

• 60 bips

Which factor provides a buffer for Saudi banks during a global recession?

• High loan loss provisions

• Low capital buffers

• High provisioning buffers

• Low net interest margin

What is the average Brent crude price forecasted by the house till 2023?

• $110 per quarter

• $90 per quarter

• $80 per quarter

• $100 per quarter

How do high oil prices affect consumer and business confidence?

• Decrease confidence

• No effect

• Increase confidence

• Fluctuate confidence

What is a key underpin for banking sector profitability in Saudi Arabia?

• Low credit growth

• Declining credit growth

• High credit growth

• Stable credit growth