SAMA Seeks Public Consultation on Draft Rules for Supply Chain Finance
The Saudi Central Bank (SAMA) has released the draft "Rules for Practicing Supply Chain Finance" for public consultation, inviting feedback and insights from experts and stakeholders via the National Competitiveness Center’s "Istitlaa" platform.
The release of this draft aligns with SAMA’s supervisory and regulatory mandate over the financing sector, which is a key area under its jurisdiction. It also reflects the Bank's ongoing efforts to develop the financial sector while reinforcing its stability and sustainability.
Enhancing Financial Efficiency and Flexibility
The proposed project aims to elevate the efficiency and flexibility of financial transactions across commercial sectors and foster innovation in financial services. This initiative is expected to cultivate a more conducive environment for financing activities linked to supply chains.
Furthermore, the proposed rules establish clear standards and procedures to govern supply chain finance practices, as well as the regulation of supply chain finance brokerage. These measures are designed to strengthen the sector's regulatory framework and propel its growth within the Kingdom.
Ultimately, the release of this draft underscores SAMA’s strategic focus on updating regulatory frameworks for financing activities to meet evolving market demands. This move will contribute to optimizing the financial sector's performance and broadening the spectrum of funding solutions available to commercial businesses.