Saudi banks mulls selling NPLs via securitization deals- Sources

Saudi banks are considering selling non-performing loans (NPLs) through securitization deals, Bloomberg reported, citing sources.

The sources suggested that the first major sale could occur this year, creating additional opportunities for lending to support ambitious development initiatives for giga projects.

According to data available on Argaam, NPLs are bad loans that remain on banks' books and have not yet been written off.

By the end of last year, Saudi banks recorded NPLs totaling SAR 36.19 billion, with a coverage ratio of 132%.