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Bounced checks declines in KSA
The number of bounced checks in the Saudi market reached 44,984 checks in 2012, felling by %27 compared to 2011 figures, according to the Saudi Credit Bureau (SIMAH) report. The value of the checks also felled by %31 reaching U$ 1 billion, from U$ 1,4 billion.
The value of bounced checks that individuals issued dropped by %29 to US 347 million compared to U$ 480 million, while the value of corporate bounced checks dropped by %32 to reach U$ 667 million compared to U$ 987 million. Their number of checks also dropped by %44 to 22,189 checks compared to 39,660 checks in 2011.
During the years 2009-2012, the value and number of bounced checks witnessed a drastic drop at rates of %60 and %63 respectively. The value dropped to U$ 1 billion in 2012 compared to U$ 4 billion in 2009 and, likewise, the number dropped to 44,984 checks in 2012 from 167,155 checks in 2009.
According to the report, %63 of the bounced checks in 2012 were attributed to non-availability of sufficient balance. Corporations and individuals issued some 14,600 and 17,000 bounced checks respectively. The value of these checks stood at U$ 427 million and U$ 205 million respectively.
JCCI announced several times a series of awareness on the dangers of bounced checks on individuals and business community. (SIMAH), which is owned by 10 Saudi banks and governed by the Credit Information System (CIS), has also launched a series of awareness campaigns on the risks associated with bounced checks due to their negative effects on individuals or national economy.