Reviewing the partial regulations for the Saudi Mortgage Law published by SAMA, NCB Capital believes that the regulations are positive and will impact the banking sector in the medium to long term.
The final approved draft of three of the five laws forming the Real Estate and Financing Law published by SAMA relate to (1) Real Estate Financing (2) Financial Leasing (3) Supervision of Finance Companies. The law related to foreclosures in case of non-payments "The Execution Law", and the "Registered Real Estate Mortgage Law" are yet to be published.
"The aim of the regulation is to separate the mortgage lending function from commercial banks, similar to separating the commercial banks from the securities business," said Mahmood Akbar, Equity Research Analyst at NCB Capital. "If the banks need to create separate entities to deal with mortgage lending, the benefit from the proposed law will materialise in the long-term."
Read more: http://www.gulfbase.com/news/ncb-capital-published-laws-by-sama-will-benefit-ksa/230390
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