The Central Bank of Aden is preparing to launch the First Bank of Aden
English - Saturday 11 September 2021 الساعة 03:21 pm
Aden, NewsYemen, Exclusive:
A senior source in the Central Bank of Yemen, Aden, confirmed that preparations are underway to launch the largest bank officially affiliated with the private sector, "Aden First Bank" in the temporary capital, Aden, to play the role of private banks that rejected the Central Bank's directives to transfer their main centers to Aden.
The Central Bank of Aden had issued a directive obligating banks to move their headquarters from Sanaa, which is under the control of the Houthi militia, to the temporary capital, Aden, which the 16 banks that are headquartered in Sanaa did not respond to.
The source told "Newsyemen" that "First Bank of Aden" will be given priority by the Central Bank of Aden, in all local and international banking transactions, credits and reconstruction financing, dealing with foreign organizations, and providing it with liquidity from local and foreign exchange.
He added, "The shares of First Bank of Aden consist of banks, investors, businessmen and major exchange companies, and foreign bank experts from Sudan, Jordan and Britain are currently working in Aden, preparing the latest arrangements for the bank's systems, regulations and plans at home and abroad."
Al-Qutaybi Islamic Bank and Company owns 25 percent of the shares of the new bank. Al-Qutaibi rose strongly during the war years and gained a good reputation and prestige among Yemenis, on the other hand, well-established and most widespread banks and exchange companies during the war years lost their reputation and future, which aligned themselves with their interests and serve the parties to the conflict without the citizens.
According to banking experts, the launch step of the First Bank of Aden may be followed by placing the banks that rejected the decisions of the Central Bank of Aden, to transfer their headquarters from Sana’a, to the blacklist, and the next stage will witness the fading of the influence and control of major exchange companies that have been on the throne of banking activities for decades.
According to the Central Bank of Yemen law, the minimum paid-up capital for each bank licensed to operate in Yemen is six billion riyals.
The capital of banks is important in strengthening their financial positions and raising their ability to perform their economic role and meet their financial obligations.
The sources confirm that four major exchange companies had submitted a request to the Central Bank of Yemen, Aden, to change their activities from exchange companies to banks, stressing that the bank refused to launch small banks, and offered them an offer to merge and launch a strong bank instead of small and weak banks.
The Yemeni banking sector currently consists of eighteen banks, five of which are Islamic, but they are largely ineffective, and the market remains concentrated in the hands of 4 banks that account for 60% of the total assets.
