King Salman bin Abdulaziz Al-Saud has approved the Saudi Central Bank Law which provides for, among other things, changing the name of the Saudi Arabian Monetary Authority (SAMA) to Saudi Central Bank, with direct reporting to the King.
According to the new law, the Saudi Central Bank will continue to use the acronym "SAMA" due to its historic significance and relevance locally and globally.
In a statement, SAMA says that the Saudi Central Bank will continue to enjoy financial and administrative independence. This approach comes in line with international best practices for central banks. The law also stipulates that the Saudi Central Bank shall replace the Saudi Arabian Monetary Authority in all its rights and obligations.
The new law identifies the objectives of the Saudi Central Bank as follows:
Maintaining monetary stability.
Promoting the stability of, and enhancing confidence in, the financial sector.
Supporting economic growth.
In addition, the law confirms that the Saudi Central Bank is responsible for setting monetary policy and choosing its instruments and procedures. It explains the relationship of the Saudi Central Bank with the government as well as relevant international entities. Moreover, it updates the governance framework of the Saudi Central Bank's operations and decisions.
The Saudi Central Bank continues supervising the financial sector's institutions, including insurance companies, banks, finance companies, the credit information sector, and the FinTech sector.