Most Saudi banks are highly liquid and Saudi Investment Bank (SAIB) is no exception. Generally, the kingdom’s lenders are well capitalised with a strong loan-to-deposit ratio and are well positioned to meet demand for loans.

Total deposits across the banking sector rose by 14 per cent in 2012 and 7 per cent for the first nine months of 2013.

However, Saudi banks do face tough competition in the market, with financial institutions vying for deposits needed to maintain high levels of liquidity.

This competition means that net interest margins are under downward pressure. SAIB has to manage this challenge by offering a variety of deposit banking products with different maturities, as well as continuing to expand its customer base.

Widening its customer base in the Saudi banking market will help to minimise the concentration risk of catering to only a few large borrowers.