DUBAI: Saudi Arabia's central bank governor said on Wednesday that bank mergers are welcome as long as they are good for the economy, after its biggest bank entered a binding merger agreement to create the Gulf's third largest lender.

The Saudi Arabian Monetary Authority (SAMA) is currently considering issuing new bank licences, its governor, Ahmed al-Kholifey, said.

(Reporting by Marwa Rashad and Davide Barbuscia; Writing by Yousef Saba Editing by Gareth Jones) ((Yousef.Saba@thomsonreuters.com; +971562166204))