IslamicFinance.de

After a decision by the Saudi Arabian Monetary Agency (SAMA) prohibiting banks from compounding interest, Saudi commercial banks were expected to improve their services. However, the services remained substandard. In their terms and conditions for extending loans, the banks determine the profit rates depending on the size of the loan and the financial position of the customer. You will often see customers waiting in long queues to be served because the banks do not appoint sufficient number of employees to serve customers. The complaints against Saudi commercial banks have become a normal phenomenon. The banks would have improved their services if they had heeded SAMA's instructions.