Dubai Legal Consultancy Wadi Consultancy : Arab bankers to discuss global financial crisis

FOR IMMEDIATE RELEASE
(Free-Press-Release.com) April 18, 2009 -- Dubai: Representatives of more than 300 Arab banks will gather in Dubai next week to take stock of the global financial crisis and discuss how financial institutions in the region can overcome its impact.
Sulaiman Hamid Al Mazroui, Emirates NBD Group general manager for marketing and corporate communications who represents the UAE on the board of the Union of Arab Banks, said the discussions will cover topics such as the causes of the financial crisis, its impact on Arab economies and strategies to ward off similar problems in the future.

He said the local and regional banking systems have responded well to the situation but a full recovery depends on how the Western markets - where the problems originated - get out of the crisis.
"The UAE is an open economy and the crisis affected the banking sector here, but it was tackled promptly and effectively," Al Mazroui said referring the Dh120 billion in liquidity support the Federal Government and the UAE Central Bank provided to local banks in the midst of the global credit crunch.

"I think this quarter and the next one will see improvement. We are already seeing some sort of recovery, and it has started to show in terms of liquidity, [and banks] going back to retail financing," he told Gulf News in an interview, pointing out that the rate of recovery will depend on an improvement in global consumer confidence.
Al Mazroui expects inter-banking lending to improve by the third-quarter of this year.
At the peak of the crisis last year banks worldwide had become wary of lending to each other, not knowing who was exposed, and to what extent.
Arab bankers will also discuss ways to boost intra-Arab cooperation and accelerate ongoing efforts for economic integration.
These include seeking participation of regional sovereign wealth funds in financing infrastructure and other projects in Arab countries.

This is the first time the Beirut-based Union of Arab Banks is holding its annual general congress in Dubai. The event will take place on April 19 and 20, with the theme being "The Crisis: Vision for Tomorrow."
Increased bank lending is the key to spurring consumer spending, Al Mazroui said.
"Every aspect of the economy is inter-linked. If banks do not lend, the wheel of economy is not going to roll," he said.
Among the lessons of the financial crisis, banks have learned to be more realistic about pursuing expansion.
"We have to look at what the market wants. The crisis has taught us not to expand more than what you need. These lessons will be with us for a long time," Al Mazroui said.
© Gulfnews 2009

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