Saudi Banks Face Liquidity Crunch

The transcript discusses the current stress levels in the Saudi banking system, highlighting liquidity issues due to low oil prices and fiscal deficits. It explores potential measures to address these challenges, such as adjusting loan-to-deposit ratios and reserve requirements. The impact of sovereign downgrades on debt demand is examined, with a focus on Saudi Arabia's strategy to tap into international debt markets. Despite low global interest rates, financing costs remain a concern, but the environment is still favorable for GCC countries to issue bonds.

What is the projected fiscal deficit for Saudi Arabia as a percentage of GDP?

How might further sovereign downgrades impact the banking sector in Saudi Arabia?