By Dr. Faisal M. Atabani
Abstract
Banking system is considered as the
main part of a financial system of any country. A fully regulated financial
system is an indicator of stability of the economy. Saudi Arabia is one of the
main emerging economy in the world that participating in the G22. Saudi Arabia
has been moving to a very fast towards legal, social and economic reforms. It
has created its famous vision 2030, which is considered the most constrictive
tool to change its future. Moreover, it promulgates several laws and
regulations to implement and enforce its vision. Hitherto, some conventional
practices by the society may be considered as against the government developing
trends. One of the most critical issue that could be considered as outside the
government control is the Non-Banking Finance Solutions. This conventional
transaction practiced by individuals and commercial entities without a full
control from the financial regulator. This study aims to focus on this issue by
studying its legal background as well as its implications on the financial
system. Also, the study will suggest some legal solution to enhance regulatory
supervision that may control such business.
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