Arab banks delivered great performance

Dubai :  Arab banks have succeeded in delivering outstanding performance despite the effects of the global financial crisis, said Adnan Ahmad Yousuf, Chief Executive Officer and Chairman of the Union of Arab Banks, pointing out that the banks managed to raise their total assets to $2.3 trillion (Dh8.4 trillion) .

Yousuf attributed the key factors behind the global financial crisis and imbalance of capital flow, from the mid-90s until the current decade, to the decreased national savings in advanced economies.

"The distinct increase in national savings linked with the investments in many emerging markets was another reason behind the outbreak of the crisis," said Yousuf.

"When the crisis is over, the Arab and Islamic banks should continue to pursue cautious policies, especially in loans and maintaining liquidity. Government should also play a role in introducing new programmes that will enhance and support the banking system, allowing it to fulfil its role and boost credit flow into households and companies.

Accepting

"It is unrealistic to expect the crisis to end completely, even if the measures suggested by the World Bank, International Monetary Fund and G20 are implemented. What is truly required is a financial system that is flexible and, on a very large scale, accepting. It should not depend on structures based solely on debt and interest rates."