Modernization of banking sector,Challenges of 21st century [Archives:2003/680/Business & Economy]

October 27 2003

By Sulaiman Mohammed al-Haboub
Economic researcher
For the Yemen Times

It is quite sure that all means of exchange, whether they are banknotes or gold or silver coins or barter operations, have all been contained into two factors; imported and exported. These two terms have been regulated through legislation and agreements organizing international trade exchange in a multi-way system.
Trade is the means of communication among peoples and tribes of humanity. Here in this regard I want to observe the development of banking systems in the republic of Yemen for the period 1962 till today in 2003.
We have to understand that the difference between units of the banking apparatus anywhere and in any country is not abrupt but the difference is rather in the number and quality and level of banking services and thus the clients would prefer to deal with this bank or that.
Therefore in order to bridge the gap we have to understand first the syllabus of electronic banks and electronic trading. One of the priorities is to raise efficiency of baking performance by linking branches to the centres within the boundary of the country first and gradually among banks inside the country and then with banks in other neighbourly countries. The reason is that such expansion makes the client understand that the bank is as his agent or representative as banks are entities based on trust and feel assured about their role in initiating the leadership of the economic market and trade transactions and other banking tasks internally and externally.
In a guarantee gesture there must be a legislative leap having the results preserving legitimate rights of clients or the contributor or depositor preventing the occurrence of crises or loss of rights inside or outside the country. Recognizing the gap of information pushes us to give an idea about it via all possible instruments like press and publications about the concepts of virtual economy, virtual money and virtual banks and their outcomes which are services offered via banks. The client has to reach that level of dealing, culturally, in knowledge and commercially. Small electronic calculators and personal computers and big computers are major inlets for the banks of money and information ''digital technology''.
The successful proceeding towards keeping pace with the age of GATT and globalization, makes us comprehend that trade exchange means increase in and variety of volume dealings of goods and services across borders accompanied by flow of investment and capital funding and local stock markets and removal of chains against their internationally movement. In other words connecting world markets with each other without any meaning of borders that would be merely political and geographical lines, as is the case now for European countries and those of the NATO.
The other aspect of modernizing the banking sector and challenges of the 21st century is that the existence of 18 commercial, Islamic and specialized for housing in Yemen makes us optimistic about joint efforts between financiers of capitals for these banks and makers of financial and monetary policy to go ahead with our expertise towards the future. No doubt the Central Bank, the Banks Society, the Bank Institute and the Union of Arab Banks have great effect in the progress of the banking work at the 21 century. Also the Central Bank's ambitious programs aim at raising the performance level of the national banks and we want here to confirm that leaders of national banking work know well that the world trend towards the economic reform means exportation and not only receiving foreign trade.