Seeking to ease tightening liquidity in the banking system, Saudi Arabia's central bank has raised the ratio of deposits which commercial banks can lend out to 90 percent from 85 percent, industry sources said on Sunday.

No comment was available from the central bank outside office hours.

Banking system liquidity has tightened over the past year as low oil prices have reduced inflows of new state revenues and prompted the government to issue bonds to banks to cover a budget deficit that totalled nearly $100 billion last year. - Reuters