Abu Dhabi: The Arab Monetary Fund (AMF) on Monday called for exercising strict control over the financial sector to avoid a repeat of the current global downturn as a direct consequence of the credit crunch in future and mitigate its possible effects.
"In view of liberalisation of the financial markets, capital flow and systematic risks emanating from fragile financial systems, there is a great interest [being shown] by decision-makers in the importance of stability of the financial system," said Dr Jasem Al Mannai, director-general of the AMF, yesterday while opening a training programme on safety of financial indicators.
Al Mannai's address, read on his behalf by Dr Saud Al Beraikan, director of the AMF's Institute of Economic Policy, warned that any instability in the financial system could make the sector vulnerable to crises which could have a severe impact on the economy.
"Financial safety indicators are critical for keeping an eye on the financial system to identify its resilience to fluctuations in capital flow," he added.
