Two Yemeni banks merged [Archives:2006/938/Local News]

April 17 2006

SANA'A, April 13 ) The government approved the merger of the Cooperative Agricultural Credit Bank (CACB) and the Housing Credit Bank (HCB), in one bank, which will be called the Development Bank for Agriculture and Housing (DBAH). Economic experts had praised the decision, claiming that it will contribute to support productive sectors. The new bank is intending to finance small and medium projects in these sectors such as fish industry and agriculture. According to experts, this will have positive impacts on investment in Yemen.

The merger of the two banks came after government's call for taking the steps necessary to face the international competition expected when Yemen joins the World Trade Organization.

The Yemeni cabinet had approved merging of government and mixed sector banks in one bank, with a capital of 50 million dollars, in a step that fulfills supporting the Yemeni economy. The step will meet the development efforts to refresh banking situations and serve developing the middle class.

Four banks were specified for restructuring, and two of them had so far merged. It is worth mentioning that the Central Bank had asked all the banks to increase their capital in order to be qualified and competent.