1 Day
Source:
الاقتصادية
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SIBOR Hits 4-Month High Near 5%
The three-month "SIBOR" rate increased to 4.97%, the highest level in over four months, compared to a monthly average of 4.82%. This rise indicates an increased cost of unsecured financing within the banking sector, especially for medium-term durations, but it does not suggest a severe liquidity shortage or a widespread banking crisis. Data shows that banks are now willing to pay higher costs to secure funding for periods spanning several months, while the repo market and yields on “SAMA” instruments remain stable. This reflects an overall liquidity surplus amid a shift in borrowing costs across different maturities. The increase does not impact all banks equally; it is primarily reflected in the 3- and 6-month tenors, while short-term financing costs remain stable. This trend indicates that banks are pricing longer-term funding at higher rates, often due to expectations of loan growth or upcoming financial maturities.
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