Affordability the key paradigm in long-term debt sustenance in consumer lending in Saudi Arabia
Having grown its market share in the mortgage business over the last four years, Samba Financial Group plans to transform itself into a diversified retail banking player.
While mortgage markets in Asia Pacific are taking a hit from tightening regulations (China, Hong Kong and Singapore), struggling property demand (Taiwan and South Korea) and bad bank debts (Vietnam), their peers in Saudi Arabia are getting ready for take-off. Prior to 2006, Saudi Arabia’s personal loan sector grouped a myriad of different lending businesses under the consumer finance portfolio, with tenures up to 20 years. Customers were provided with bank loans based on their salaries under consumer finance rather than under a well-structured mortgage loan programme.
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, Retail Banking
, Saudi Arabia
Keywords: Eisa Al Eisa
, Samba Financial Group