Posted in:
Business & Economy
Written By: Faisal Darem
Article Date: Mar 13, 2010 - 3:49:00 PM
The first conference of Islamic banks to assess reality and future prospects
The Yemeni Businessmen Club will organize the first conference of Islamic banks on 20-21 March in Sana’a under the slogan “Yemeni Islamic Banks: Reality and Future Prospects.”
The conference addresses a number of themes, including the strengthening of banks capacity to accommodate with developments and the promotion of banking investment partnerships between divergent Islamic banks. The conference will also highlight the experiences of Islamic insurance policies in Yemen as well as the whole region, while assessing the role of Islamic banks in development. The conference will evaluate the legitimacy of Islamic banks in Yemen and the impact of Islamic bank financing of macroeconomic variables and development in Yemen, comparing Islamic branches of conventional banks with conventional banking sectors. The conference will discuss the problems of liquidity management and investment in Islamic banks as well as the legislative and legal environment of Yemeni Islamic banks. The conference will urge corporate governance within Islamic banks in Yemen. Fundamentally, the problems of joint investments between Islamic banks internally and externally, as well as the impact of the global financial crisis on the performance of Islamic banks, will gain prominence as issues under the glass.
The conference aims to assess the experience of Islamic banks and raise awareness of Islamic banking, through the attendance of various members of the boards of Islamic banks in Yemen and local and foreign economists. According to a report issued by the Central Bank of Yemen, there are four Islamic banks from among 18 independent banks in Yemen. However, the Islamic banks are seeing more growth than their commercial or conventional counterparts.
The four Islamic banks accounted for 31 percent of total assets held in the Yemeni banking sector in 2008, compared to 30 percent in 2007. This steady progress reflects the prosperity of Islamic banks.
The funds and loans given by commercial and Islamic banks to finance private sector activities increased to YR418 billion in 2008, from YR359 billion in 2007, an increase of YR58.7 billion or 16.3 percent, according to an official report issued by the Central Bank of Yemen.
Portfolio-funding shares of the 14 commercial banks accounted for 60 percent, whereas the 4 Islamic banks accounted for 40 percent of the market.
