The greater dynamism of consumption during the first part of the year prompts an upward revision of its growth forecast for 2022, delaying its adjustment to the second half of this year and 2023. The opposite is true for GFCF, for which more significant falls are expected this year and next. Investment fundamentals have also worsened. In the case of financial conditions, the deterioration that has already occurred in the capital market and the lower levels of longterm savings for financing investment play an important role. Add to this the revisions to the Capital Goods Corporation's investment survey, persistently high uncertainty and a pervasive fall in business sentiment (figure 12). The adjustment of the 2021 overspending will allow for a reduction in the currentaccount deficit and an increase in national saving over the policy horizon. Nevertheless, a current-account deficit similar to that of 2021 —in the order of 6.5% of GDP— is expected this year, reflecting higher projected consumption and an unfavorable evolution of external prices. In 2023 and 2024, the deficit will narrow to between 4% and 4.5% of GDP, consistent  5  with the adjustment in domestic spending. In this scenario, domestic savings will rise from around 18.5% to 20% of GDP between 2022 and 2024. Externally, the impulse to the Chilean economy has dwindled, particularly because of the worsening of global financial conditions in the face of the withdrawal of monetary stimulus. The central scenario projections assume that international prices of foods and commodities will remain high for several quarters.

These institutions participate in the financial sector in pursuit of their specific objectives, and  2  BIS Review 85/2007  also play an important role as institutional players and investors in deepening the financial market. Saudi Banks have made tremendous progress in terms of products, services, technological sophistication and capitalization. SAMA has all along been keen that banks conduct their business on sound principles. The Banking Control Law, enacted in 1966, has vested SAMA with broad supervisory powers. It requires SAMA to conduct on-site and off-site supervision and has stringent provisions for capital adequacy, liquidity and reserve requirements, loan concentration, etc. The law also provides for banks to submit regular financial and statistical statements to SAMA and for SAMA to carry out on-site and off-site banking supervision. SAMA has also set up, in cooperation with the commercial banks, a number of advanced and sophisticated payments and settlement systems, including Automated Clearing Houses, Saudi Payments Network (SPAN) which supports the ATMs and POS terminals, Electronic Share Information System. These systems have been interlinked with each other by the Saudi Arabian Riyal Interbank Express System (SARIE), an electronic fund transfer system, instituted in May 1997. These technological developments have contributed significantly to improving the level of quality of consumer services, reducing costs, enhancing efficiencies, and strengthening controls. They have created a strong and sophisticated technological platform for a quantum leap in electronic banking and financial services in the new millennium. Together with SAMA, commercial banks still constitute the backbone of the Saudi financial system.