Saudi Arabia has no need to merge its banks in response to the global financial crisis, the kingdom's central bank governor said on Wednesday, dampening speculation that such a move may be at hand.

"They don't need any assistance, they are highly liquid and have good capitalisation," Hamad Saud Al-Sayyari told reporters on the sidelines of an Islamic finance conference.

When asked by Reuters if there was a need for Saudi banks to merge to cope with the credit crunch, he said: "No, no there is no need."    
The central banker also said Saudi foreign investments are "very safe" and have not been impacted by the global crisis. - Reuters