Document Details

Document Type : Article In Journal 
Document Title :
The Effect of Government Deficit on the Profitability and Exchange Reserves of the Banking System in Saudi Arabia
أثر العجز في الإنفاق الحكومي على ربحية واحتياطيات النظام المصرفي في المملكة العربية السعودية
 
Subject : Economics 
Document Language : Arabic 
Abstract : This study has investigated two important effects of the government deficit in Saudi Arabia. The investigation has shown that, while the financing of government deficit does not affect the total foreign exchange holdings of the commercial banks, it has a significant effect on the foreign exchange reserve of the central bank. One percentage increment in the ratio of government deficit to GNP decreases the ratio of foreign assets to total assets of the Saudi central bank (SAMA) by 0.56%. The profitability of the commercial banks also affected by the ratio of government deficit to GNP. One percentage increment in this ratio increases the return on total assets of the commercial banks by 0.17%.The first and third results enhance the wide belief that commercial banks in Saudi Arabia have relatively high domestic liquidity which they use to finance government deficit without liquidating foreign assets. 
ISSN : 1319-0997 
Journal Name : Economics and Administration Journal 
Volume : 20 
Issue Number : 2 
Publishing Year : 1427 AH
2006 AD 
Article Type : Article 
Added Date : Sunday, October 11, 2009 

Researchers

Researcher Name (Arabic)Researcher Name (English)Researcher TypeDr GradeEmail
عيد عبدالله الجهنيEid Abdullah AljuhaniResearcher  

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