That underlying activity - based upon expert and objective assessment of prospective profitability relative to potential risk, clearly can, in itself, make a significant difference to the productive capacity - the sustainable rate of growth - of the wider economy. In addition, of course, financial intermediaries provide essential banking, insurance and other services, without which the non-financial economy would find it impossible to function. Of course it is true that financial intermediaries are motivated by profit. Prospective profitability is the measure by which they decide how to direct resources to their most productive use, which is, as I say, their essential economic function. Moreover, they are for the most part lending, or investing, or advising on the investment of, funds which ultimately belong to others, and they have to aim to maximise the return on those funds in the interest of their customers, as well as on their own account, if they are to stay in business for the longer term. Recent international history is littered with instances in which misallocation of financial resources to non-productive investment, followed by disruption of the financial system, has resulted in massive economic and consequent social damage. It was a major factor, for example, behind the Asian crisis and its aftermath.
The Kingdom has maintained high sovereign credit ratings as assessed by global rating agencies for its financial solvency. The last rating was AA- awarded by Standard & Poor’s and Fitch for long-term credit rating in national and foreign currency, with a stable outlook . Confidence is still great and solid that strong growth and comprehensive development of the Saudi economy will continue under the wise leadership of the Custodian of the Two Holy Mosques. The Custodian of the Two Holy Mosques is well-known for his concern about his citizens, and he is determined to closely follow up their needs, including reduction of poverty, supporting Social Security, approving salaries increase & cost of living allowance, confirming wage earners, addressing the housing issue, supporting specialized development funds, etc. and other decisions aiming at improving citizen’s living conditions, which he deems as the objective and tool of the development process. We pray to Almighty Allah that there will be many happy returns of this dear national occasion for years and years for the citizens of this country, hoping that the Custodian of the Two Holy Mosques and his Crown Prince will continue to enjoy full health and wellbeing, with the Kingdom enjoying security and stability, to continue the development process, under our wise leadership. BIS central bankers’ speeches  1