All these developments contributed to the growth of the Kingdom’s economy and enhanced the stability of its financial sector. Domestic banks’ capital adequacy ratio (Basel Standard) stood at 17.8 percent at the end of the second quarter of 2014, exceeding the prescribed rate of 8 percent. In addition, stress tests conducted periodically by SAMA on commercial banks showed good results. Banking services witnessed further expansion throughout the Kingdom. Commercial banks’ branches increased by 53.8 percent to 1,862 at the end of July 2014, compared to 1,211 at the end of July 2004. In recognition of the importance of using latest technological developments in the banking field, SAMA worked with domestic banks on the introduction of the latest secure banking technology. In this regard, the value of transactions carried out through SARIE system picked up to SAR 54.6 trillion in 2013 from SAR 8.1 trillion in 2004. Moreover, the total number of transactions executed through ATMs went up to 1,335.5 million in 2013 from 412.1 million in 2004. During the same period, the total number of transactions carried out through POS terminals increased to 294.1 million with a total value of SAR 144.3 billion from 52.1 million with a total value of SAR 23.9 billion. The number of bills paid through SADAD system increased to 160.8 million with a value of SAR 176.6 billion in 2013 from 43.5 million with a value of SAR 22.0 billion in 2007.

Hong Kong  Repayment criteria toughened, a risk weight floor of 15% for residential mortgages, LTV on car park spaces and commercial property  Action on car park spaces followed leakages of the house price exuberance into other sectors  New Zealand  Restriction of new high LTV lending to 10% of new loans  Singapore  Debt service ratio, reduced repayment periods, tightened LTV, increased land supply  Norway  Countercyclical capital buffer of 1% from July 2015  UK  Removed incentives for household lending in Funding for Lending scheme. FPC given ability to recommend changes to affordability criteria on mortgage lending. 8  Part of a series of measures. BIS central bankers’ speeches  References Aikman, D, Haldane AG and Nelson, B (2010) “Curbing the credit cycle”: http://www.bankofengland.co.uk/archive/Documents/historicpubs/speeches/2010/speech463. pdf. Aikman, D, Haldane AG and Nelson, B (2014 forthcoming) “Curbing the credit cycle”, The Economic Journal. Bank of England (2009), “The role of macroprudential policy”, Discussion Paper: http://www.bankofengland.co.uk/publications/Documents/other/financialstability/roleofmacrop rudentialpolicy091121.pdf. Bank of England (2011), “Instruments of macroprudential policy”, Discussion paper: http://www.bankofengland.co.uk/publications/Documents/events/ccbs_workshop2012/paper_ kapadia.pdf. BCBS (2010). Basel III: A global regulatory framework for more resilient banks and banking systems. Chari, VV and Kehoe P (2013), “Bailouts, time inconsistency and optimal regulation”, NBER working paper no. 19192. De Paoli, B and Paustian, M (2013), “Coordinating monetary and macroprudential policies”, Staff Reports 653, Federal Reserve Bank of New York. Goodfriend, M. (2007) “How the world achieved consensus on monetary policy”, Journal of Economic Perspectives, 21(4), pages 47–68. Haldane, A. G. (2013), “Why institutions matter (more than ever)”: http://www.bankofengland.co.uk/publications/Documents/speeches/2013/speech676.pdf.