IMF paper examines bank lending in Saudi Arabia

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Reducing the reliance on banks to finance Saudi Arabia's budget deficit would foster credit provision to the private sector, a working paper published by the International Monetary Fund says.

Author Tim Callen examines the environment of bank lending when oil prices are low, noting high oil prices support bank lending along with strong balance sheet conditions and economic growth.

In his paper, What Influences Bank Lending in Saudi Arabia, Callen finds lending "remained robust" in 2015 despite o