Assets of Yemeni banks reach Y.R 226 billion in 2018, but not available in cash

English - Sunday 03 March 2019 الساعة 07:12 pm
Aden - NewsYemen.net

The consolidated balance sheet assets of the Yemeni commercial and Islamic banks increased to Y.R 3.409 trillion in October 2018, an increase of 7.1%, due to reserves, loans and advances. However, the bulk of these assets are still out of control of banks.

According to the financial statements published by the Ministry of Planning in its 2018 GDP report, Newsyemen got a copy of the report, the bulk of the bank assets are still out of control and are not available for use in the form of government securities, deposits, at the central bank, and private sector loans are at risk of default, exacerbating the liquidity crisis and the crisis of confidence in the banking sector.

During the same period, banks' reserves rose by about 18.2% as a result of the accumulation of their reserves at the central bank, which is considered frozen, while the local currency increase in banks' notes (coffers) because banks no longer put their deposits at the central bank.

The financial data showed that the loans and advances of the banking sector increased by 8.6% for the same period as a result of the 17.6% increase in credit granted to the private sector, which was offset by the increase of loans to the government by about 6% due to the recording of the government's domestic debt service to banks, which registered in accounts but is not available in cash.

The foreign assets of the banking sector declined between December 2017 and October 2018 by about 7.6% due to the decline in the foreign currency of banks and their investments abroad, as well as the decline in their foreign exchange reserves in foreign banks due to the difficulty of the transfer of liquidity and the low remittances received and transactions with international financial institutions.