SAMA Updates Rules on Disclosure of Interest Rates on Financing and Savings Products

Riyadh, The Saudi Arabian Monetary Authority (SAMA) announces the issuance of the updated version of the Rules on Disclosure of Interest Rates on Financing and Savings Products. The updated rules aims to promote transparency and enable consumers to compare financing and saving products rates. Therefore, banks and finance companies operating in Saudi Arabia are required to disclose and publish the minimum information required about products offered to retail consumers, micro and small enterprises on their websites and through their marketing channels. In addition, Banks and finance companies should encourage consumers to visit their websites and compare between prices to make informed decision and choose the suitable products which serve their needs.
SAMA indicates that the Updated Rules on Disclosure of Interest Rates on Financing and Savings Products that supersede the previous versions, require banks and finance companies to include all financing and savings products rates in one page under an icon called “Rates of Financing and Savings Products.” The icon shall appear in the home page of the bank or finance company website to provide consumers with easy access. The page will include all tables and calculators related to financing products, savings products and credit cards, if any. The calculator shall present the type of product and its periodic rate based on the consumers inputs. Moreover, the new rules require banks and finance companies to carry out a periodic review (every month at least) of the rates and state the date of last update at the top of the page. To view the Updated Rules on Disclosure of Interest Rates on Financing and Savings Products, please visit SAMA’s website:
http://www.sama.gov.sa/en-us/laws/pages/bankingrulesandregulations.aspx

 

Source: Saudi Press Agency

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