There’s a proverb that says, “Every action has an equal and opposite reaction.” Well, it looks like the Saudi National Bank is taking this adage to heart as they announced their actions following Credit Suisse’s remarks. The financial world is buzzing with news of what this could mean for both banks and, more importantly, the customers who rely on them. In this blog post, we’ll dive deeper into what led up to these events and explore the potential outcomes – so grab your coffee and settle in because you won’t want to miss a thing.
Saudi National Bank Takes Action Following Credit Suisse Remarks
On September 13, the Saudi National Bank (SNBC) announced that it had taken unspecified “disciplinary and corrective actions” against two of its employees in response to Credit Suisse’s recent remarks about the state of the Saudi economy. The bank said that it would not comment further on the matter.
In a report released on September 10, Credit Suisse outlined its expectations for economic growth in Saudi Arabia for 2018, 2019, and 2020. The bank said that it expects growth in 2018 to be around 2 percent, followed by 3 percent growth in 2019 and 2020. In its report, Credit Suisse noted that this projected growth is below the rate of population expansion and lower than the average growth rates seen over the past five years.
The head of research at Credit Suisse, Salman Al-Ansari, made several comments about the economy in Saudi Arabia during a presentation at an investment conference in Riyadh on September 9. Al-Ansari noted that private sector activity was weak and said that business confidence had decreased since 2017. He also expressed concern about high levels of government debt and implied that there was a potential bubble waiting to burst in the market.
Al-Ansari’s comments caused a stir among Saudis following social media posts critical of SNCF. According to local media reports, some individuals have filed complaints with authorities over SNCF’s statements. On September 11, SNCF issued a statement apologizing for any offense caused by its comments and clarified that
What are Credit Suisse’s Remarks?
The Saudi National Bank (SNBC) has taken action following Credit Suisse’s recent public remarks about the country’s economy. According to Reuters, the SNB said it would stop doing business with Credit Suisse and that any existing accounts at the bank will be closed. The move comes after Credit Suisse downgraded its outlook for Saudi Arabia, citing concerns over debt levels and weak economic indicators.
The SNB said in a statement that it “reacts strongly to any unjustified attack on the Kingdom’s economy.” The move follows criticism from other financial institutions, who have also warned that the country’s debt burden is too high. Saudi Arabia has been struggling with low oil prices and a costly war in Yemen, which has led to widespread budget deficits.
Credit Suisse joins several other banks in warning about the risks associated with investing in Saudi Arabia. Earlier this year, HSBC Holdings pulled out of a $3 billion dollar deal to establish a joint venture with Kingdom Holding Company. In January, JPMorgan Chase also reduced its investment forecast for Saudi Arabia, citing slower economic growth and higher debt levels.
What is the Saudi National Bank’s Reaction?
The Saudi National Bank (SNB) has issued a statement in response to recent comments made by Credit Suisse about the bank’s financial stability. The SNB states that the bank is “adequately capitalized and able to weather any adverse external shocks.” The bank also says that it is committed to restoring market confidence and remains open to dialogue with all its partners.
What Next for the Saudi National Bank?
The Saudi National Bank (SNB) has announced that it is taking “a series of measures” in response to comments made by Credit Suisse’s global head of commodities and currencies, Michael Hajek. Hajek said earlier this week that the bank was “at risk” of a liquidity crisis due to its heavy reliance on foreign debt. The measures include increasing its reserves by $5 billion, cancelling some debt maturities, and selling assets.
Conclusion
The Saudi National Bank (SNB) has announced a series of measures in response to Credit Suisse’s recent remarks on the kingdom. These measures include suspending all dollar deposits and issuing a statement saying that the bank will “respond to any speculative activities.”
