Arab banks’ as­sets ex­ceed GDP

The Pak Banker - - Company& -

BUBAI: Arab banks are ex­pected to gain nearly $300 bil­lion in as­sets at the end of 2010 to sur­pass the re­gion's gross do­mes­tic prod­uct and this should prompt them to ex­pand their role in the do­mes­tic econ­omy, the top Arab banker has said.

The com­bined as­sets of the nearly 470 Arab banks could peak at over $2.5 tril­lion at the end of this year com­pared with nearly $2.2 tril­lion at the end of 2009, said Ad­nan Yousuf, Chair­man of the Union of Arab Banks (UAB).

Ad­dress­ing a bank­ing con­fer­ence in Beirut this week, Yousuf said de­posits with the banks as well as their cap­i­tal are also pro­jected to sharply grow by the end of this year as banks pull out of the clutches of the 2008 global fis­cal dis­tress. In his ad­dress, sent by UAB to Emi­rates 24/7, Yousuf said the surge in the banks' re­sources should prompt them to play a greater role in do­mes­tic devel­op­ment, urg­ing them to form strate­gic al­liances to cre­ate big en­ti­ties.

"Arab banks are to­day pre­pared to play a big­ger part on the global level...they should also ex­pand their pres­ence in the lo­cal and re­gional mar­ket given their mas­sive fi­nan­cial re­sources which qual­ify them to play that role," he said.

His fig­ures showed the com­bined as­sets of the Arab banks are ex­pected to top $2.5 tril­lion at the end of this year, nearly $300 bil­lion above their 2009 level.

"Fore­casts show that the Arab GDP will be around $two tril­lion this year...this means that the Arab bank­ing sec­tor will out­size the Arab econ­omy," he said. His fig­ures also showed the col­lec­tive de­posits with Arab banks could ex­ceed $1.5 tril­lion by the end of 2010 com­pared with around $1.16 tril­lion. -PB News

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