Saudi Banks Warned Over Lowball Rates

The video discusses the liquidity squeeze in Saudi banks due to falling oil prices, leading to government withdrawals and increased debt issuance. This has caused a spike in the Saudi Interbank Offered Rate (SIBOR). There is a disconnect between published rates and actual market rates, raising questions about the accuracy of bank rate submissions, reminiscent of the Libor scandal. The video explores potential reasons for this discrepancy, including possible directives from bank management or external influences.

What implications could the central bank's measures have on future interest rates?

What are the potential reasons for banks submitting lower rates than their true cost of funding?