Chamber of Commerce complains to President of imprudent behavior by Central Bank [Archives:2005/905/Local News]

SANA'A, Dec. 18)The General Association of Chambers of Commerce and Industry this week submitted a petition to the President, complaining of the way in which the Central Bank dealt with the case of Watani Bank, which declared bankruptcy.

In its petition, the Association said what happened to the Yemeni bank is a pity, but the Central Bank's conduct was inappropriate, imprudent, improvised and unprofessional. It considered neither the national nor the international impact on other Yemeni banks, nor the influence on the Yemeni economy and attracting investments. The Central Bank did not consider long-term effects on trust in the banking system when tackling this affair.

The petition continues, saying the Central Bank at least should have done what other international central banks do in similar cases. It should have issued an appeasing statement to reassure depositors, banks and markets, instead of leaving this to rumor and irresponsible bodies who do not consider the harmful effects of their announcements. Central Bank officials could have made an announcement against private banks through the press or network sites. The Central Bank simply could have issued a press release, as its main job is to promote banking activity and encourage saving by creating confidence, the petition states.

The Association included in its message to the President:

“The private bank situation does not arouse concern because they have a good reputation in keeping the deposits of customers and investors. We submit this matter to you because of its vitality. We demand that the government take quick measures to determine their stance, if they still believe in the role private banks can play, besides public ones. The government should release an announcement that would calm depositors, investors and customers of these banks.”
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