The multi-billion dollar travails of two Saudi companies have caused international banks to demand greater financial disclosure from family businesses in the Gulf and curb lending until standards improve, according to executives.

The tightening of lending criteria is a ramification of the problems faced by Saad Group, owned by Saudi billionaire Maan al Sanea, and Ahmad Hamad Algosaibi and Brothers (AHAB). These have put the practice of “name lending,” whereby banks have lent to families and private companies on reputation alone, under renewed scrutiny.