Global banks must disclose finances from April 1, says report

RIYADH: The Capital Markets Authority (CMA) will require all foreign financial institutions operating in the Kingdom to publish their balance sheets including the pay of their executives on their websites from April 1, 2016, according to Bloomberg Business on Monday.
The news site stated that this information was received in an e-mail from an official at the CMA in response to questions sent to the authority. It said that foreign banks and investment banking and securities arms of local lenders must disclose senior executives’ pay and significant risk factors, quoting two sources who asked not to be identified.
The sources stated that the disclosure is required because further insight is needed into how much money banks are making amid a slowdown in economic growth, as well as the cost of employing top bankers.
Commenting on this news, Abdullah Al-Maghlooth, a prominent businessman based in Riyadh, told Arab News that so far nothing official was announced by the CMA in this regards.
However, if the news was true this would bring greater transparency to the finance sector, which would create trust and ensure a healthier economy. The availability of such information would boost individual and business confidence in the Saudi economy, he said.
Bloomberg stated that the only banks that need to disclose financial statements now are the 12 publicly traded domestic lenders regulated by the Saudi Arabian Monetary Authority.
The country is one of HSBC Holding Plc’s 19 priority growth markets, while Deutsche Bank AG said it posted its best-ever performance in Saudi Arabia last year. United banks such as JPMorgan Chase & Co. and Goldman Sachs Group Inc. also have a presence in the country, the world’s largest oil exporter, the biggest Arab economy, and home to the region’s largest stock market.