Saudi Arabia – Monetary Agency requests an insurance sector timetable
Monday, 05 30 2016, Category: Insurance and Reinsurance, Country: Saudi Arabia
The Saudi Arabian Monetary Agency (central bank in the country) addressed local insurance companies about the need to set a timetable for the actions to be taken by management in the next phase. This new move of the Saudi Arabian Monetary Agency aims at improving the operating performance of companies and averting the liquidation risk for companies that post losses within the new corporate system.
The Saudi “Capital Market Authority” in collaboration with other government authorities gave the chance for companies that posted losses exceeding 50% of capital to adjust their financial situation instead of facing liquidation. The period given for such adjustments is one full year within the initiatives of regulators in Saudi Arabia to raise operating performance and increase efficiency by contributing in the local economy.
Source: Asharq Al-Awsat Newspaper