Only banks and insurance companies licensed by the Saudi Central Bank may provide banking and insurance services in the Kingdom of Saudi Arabia. The banking control regulation and solidarity insurance control regulation mention the criteria and requirements needed to obtain such licences. The Saudi Central Bank has a wide range of powers in granting such licences. The banks are the legal entities that exercise the banking transactions. Under law, the banks receive the moneys of customers in deposit accounts, open the current accounts, issue the letters of credit and guarantee, collect cheques, promissory notes, and bills, perform foreign exchange transactions and other banking services. The banking control regulation contains provisions on the capital adequacy and the necessary financial restraints, and permits the foreign investor to own 60% of the bank capital and 49% of insurance company according to the protocol of accession of the Kingdom to the World Trade Organization. According to the systems of insurance companies of 100 million Saudi riyal capital and re-insurance companies of 200 million Saudi riyal capital, 20% of the net profits shall be added to the statutory reserve until it reaches 100% of the insurance company capital. The insurance companies, insurance advisors, agents and mediators, and re-insurance companies should get the necessary licences from the Saudi Central bank before commencement of business.