Expatriates’ bank versus financial challenges [Archives:2002/40/Business & Economy]
YEMEN TIMES STAFF
In connection with a project for the establishing a bank for the expatriates, figures mentioned that the Yemeni Banking System consisted of 17 banks distributed over two categories, namely, the central bank, having 19 branches in the governorates and the second is that of various specialties commercial banks.
The project indicates that capital of the central bank reaches to YR 1000 million and it is the only authorized party to overseeing and monitoring banks whether commercial, specialized or Islamic. The structural position of Yemeni banks did not up to now help to establish a stock exchange market and it is facing a test for supporting or financing the establishment of an expatriates bank.
From the project of establishing expatriates bank and proposals offered in this regard to the expatriates 2nd conference in Sana’a, it is understood that there are big challenges before the project though the conference has supported the idea of its establishment. The challenges can be summed up as :
a) Founding the bank with a capital estimated at USD 50 or 75 million, equal to YR 2 billion requires amounts of money contributed by a strategic investor by 50%, the expatriates and general subscription by 30% and the state by 20%.
b) All submitted options are searching for a strategic investor whose contribution would not be less than 40%, which is an amount if available, the bank founding would be certain, otherwise the bank could never be established at all.
Through the project it is to be learnt that the there a existing need for preparing the study on the economic feasibility on the necessity of founding an expatriates bank though the objectives aimed at from the project as mentioned in it are good. These objectives are:
a) to build up expatriate capitals, mobilize expatriates savings and accommodate their investments in any fields such as, a founding industrial, professional, agricultural, mining, fish, animal and other companies,
b) founding insurance companies,
c) investive funding for contracts works,
d) buying, owning and leasing pieces of land,
e) possessing all types of patent letters,
f) presenting and regulating contribution to long-term loans.
g) practicing all kinds of banking and credit functions whether for the bank inside Yemen or abroad. Included in this are accepting deposits, granting loans and facilities, buying and selling foreign currencies, collection cheques, issuing, buying and discountings as well as conducting banking and ordinary dealings correspondents.
Functions of the bank, according to the project, also include concluding loans with the government, banks, local and foreign bodies and carrying out actions of an agent to banking and financial institutions.
The bank is also allowed to have n interest in realizing its purposes inside Yemen and practicing all activities and functions of funding, investment and buying and selling of state bonds and government money orders.
To sum it up, all these goals, if the bank was established and began carrying out its activities, would constitute firm foundations for attracting Yemeni capitals abroad and investment operation would be activated in the available opportunities, especially in the Free Zone in Aden.