Deposits volume & financial resources growth [Archives:2002/35/Business & Economy]

YEMEN TIMES STAFF
Yemen’s Central Bank follows up banking performance in Yemen via issuing periodic reports measuring through which the growth volume of banks’ budgets and, proportion of local and foreign deposits in addition to comparing the proportion of loans to the volume of unsettled debts. The central bank reports are criticized of being careless or heedless of details dealing with depositors interests nor guiding them on how to read the figures mentioned in financial lists.
A most recent report issued by the Central Bank has made it clear that financial data on activities of the banks working in Yemen during the first half of this year have realized positive results that would consequently develop banking work in the country.
Yemeni banking indicators point to a rise in budgets of the banks working in Yemen and growth in foreign deposits by 37,7% and local deposits by 62,2%, and this helps speed up establishment of a stock market. The Central Bank report clarified that the rate of increase in Banks’ financial resources reached at YR 58,9 billion during the first half of this year. The increase are distributed on deposits assets amounted to YR 37,7 and capital at YR 2,6 billion. There is also a drop in value of investment deposits at the Central Bank by an amount of YR 6,2 billion.
According to the program on banking reform adopted and led by the Central Bank of Yemen, commercial banks have channeled their financial resources to investment at foreign banks and raised the ceiling of their investments in treasury bonds by an amount of YR 17,9 billion and the net of loans at a sum of YR 4,3 billion.
Yemen Central Bank (YCB) report mentioned that the total assets of deposits till the end of last May amounted to YR 345,8 billion against YR 308,1 billion at the end of 2001.
Foreign deposits during the period from January to the end of June this year have grown by 13,4 % realizing an amount of USD 938,2 million while the proportion of deposits in Yemeni Rials has registered a percentage by 9% at an amount of YR 158,6 billion for the same period.
Assets of bank discount, lending and funding have recorded at the end of last year an increase of YR 104 billion at a rate 12,4 %. Bank loans are included many sectors especially the commercial sector that captured a percentage of 40,41%, the industrial at 24,01 %, agricultural and fishery at 1,62 %. Nevertheless, the YCB says four banks have delayed in recovering their paid capital that is decided by the main bank,
The report has also mentioned that the National Bank for Trade and Investment, Rafidain Bank, Yemen Commercial Bank and Yemen International Bank have not met the condition of practicing their banking activity which the Central Bank has defined at YR one billion at the establishment. Despite that deficiency, the bulk of commercial banks, working in Yemen, budgets have increased to YR 403,3 billion at the end of last June compared to YR 355 billion at the end of last December. The Arab Bank topped the list of banks as regards its financial deposit at a percentage of 19,4 %, the Credit Agricole Indosuez occupied the second place at 16,3%, Islamic Tadamun National Bank at 12,1%, Commercial National Bank at 10,4% and the Yemen Bank for Reconstruction at 10,4%.
The YCB is working on implementing a group of banking reforms including amending the commercial banks law and supervising well functioning of banks and offering help for surmounting the problems that face them especially the delayed debts.
Yemeni banking establishment includes, beside the central bank, 10 local and foreign commercial banks, 3 Islamic banks in addition to two banks specialized in housing and agriculture.
Financial reforms adopted by the central bank are aimed at completing the institutional and legal structure of banks and expansion in joint-stock companies in order to increase the capital volume in banks’ budgets and companies in a prelude to establishing a stock-exchange market.
The government hopes from establishing a stock market for achieving goals of development, both economically and socially through attracting investment, encouraging saving and investing migrant capitals of Yemeni expatriates in available vital areas in their homeland.

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