08 March 2009
The funds and loans given by commercial and Islamic banks to finance private sector activities increased to YR418 billion in 2008, compared to YR 359 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.
Commercial activities were the main recipient of loans from the banking sector, taking YR221. 2 billion or 52.2 percent of all loans granted in 2008. This was followed by industry with 8 percent. Loans for industrial activities reached a total of YR78.7 billion.
Financing of construction activities amounted to YR23.5 billion or 5.6 percent of the value of financing activities provided by banking sector.
Funding for agricultural and fishing activities received 1.4 percent, amounting to YR5.7 billion; the remaining loans were distributed to other activities.
The report pointed to a significant improvement in the role of banks in financial intermediation due to actions taken by the Central Bank of Yemen to reduce the reserve rate of the rial from 10 percent to 7 percent and cutting the interest rate. This move resulted in the provision of liquidity to banks and the expansion of lending and other investments. The report noted that the percentage of loans and deposits to funds dropped to 9.33 percent last year compared to 1.34 percent in 2007.
According to the report, the portfolio funding share of commercial banks amounted to 60.1 percent whereas Islamic banks gained 39.9 percent. The percentage of granted loans and financing of rial rose to YR198 billion in 2008 from YR162.3 billion in 2007, a growth rate of 22 percent. In terms of loans granted by foreign currencies, these rose to YR4.220 billion compared toYR197.4 billion the previous year, a growth rate of 11.7 percent.
The greatest increase in lending and funding was seen by the CAC Bank. CAC Bank achieved the highest growth rate of lending activities in 2008 up 46.5 percent from the previous year. The report highlighted the remarkable expansion of activity witnessed among the banks operating in Yemen. The consolidated balance sheet of commerce and banks rose from YR1271 billion in 2007 to YR1511 billion in 2008, an increase of YR240 billion with growth rate of 19 percent.
The report pointed out that the national banks accounted for 75 percent of total banking activity and Arab and foreign banks, 25 percent in 2008.
In terms of deposits, the report showed an increase from YR1053 billion to YR1236 billion, an increase of YR183 billion, at a growth rate of 17 percent compared with 2007.
In reference to the banking activities of national banks, the report identified a growth rate higher to that seen amongst Arab and foreign banks, the percentage of growth amongst national banks increased by 20.4 percent, while foreign banks grew by 14.6 percent.
According to the report, the commercial banks contributed to 70 percent of the consolidated balance sheet of commercial and Islamic banks whereas Islamic banks achieved 30 percent.
The funds and loans given by commercial and Islamic banks to finance private sector activities increased to YR418 billion in 2008, compared to YR 359 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.
Commercial activities were the main recipient of loans from the banking sector, taking YR221. 2 billion or 52.2 percent of all loans granted in 2008. This was followed by industry with 8 percent. Loans for industrial activities reached a total of YR78.7 billion.
Financing of construction activities amounted to YR23.5 billion or 5.6 percent of the value of financing activities provided by banking sector.
Funding for agricultural and fishing activities received 1.4 percent, amounting to YR5.7 billion; the remaining loans were distributed to other activities.
The report pointed to a significant improvement in the role of banks in financial intermediation due to actions taken by the Central Bank of Yemen to reduce the reserve rate of the rial from 10 percent to 7 percent and cutting the interest rate. This move resulted in the provision of liquidity to banks and the expansion of lending and other investments. The report noted that the percentage of loans and deposits to funds dropped to 9.33 percent last year compared to 1.34 percent in 2007.
According to the report, the portfolio funding share of commercial banks amounted to 60.1 percent whereas Islamic banks gained 39.9 percent. The percentage of granted loans and financing of rial rose to YR198 billion in 2008 from YR162.3 billion in 2007, a growth rate of 22 percent. In terms of loans granted by foreign currencies, these rose to YR4.220 billion compared toYR197.4 billion the previous year, a growth rate of 11.7 percent.
The greatest increase in lending and funding was seen by the CAC Bank. CAC Bank achieved the highest growth rate of lending activities in 2008 up 46.5 percent from the previous year. The report highlighted the remarkable expansion of activity witnessed among the banks operating in Yemen. The consolidated balance sheet of commerce and banks rose from YR1271 billion in 2007 to YR1511 billion in 2008, an increase of YR240 billion with growth rate of 19 percent.
The report pointed out that the national banks accounted for 75 percent of total banking activity and Arab and foreign banks, 25 percent in 2008.
In terms of deposits, the report showed an increase from YR1053 billion to YR1236 billion, an increase of YR183 billion, at a growth rate of 17 percent compared with 2007.
In reference to the banking activities of national banks, the report identified a growth rate higher to that seen amongst Arab and foreign banks, the percentage of growth amongst national banks increased by 20.4 percent, while foreign banks grew by 14.6 percent.
According to the report, the commercial banks contributed to 70 percent of the consolidated balance sheet of commercial and Islamic banks whereas Islamic banks achieved 30 percent.
© Yemen Observer 2009
