Yemeni banks reduce profit ratios

The Yemeni Central Bank decided to reduce the profit ratio on the savings in riyals from 12% to 11% and to reduce the obligatory reserves ratio on the permanent and current accounts from 15% to 10 %.

The Yemeni Central Bank's governor, Ahmed Abdel Rahman Al Samawy, issued three decrees bearing the numbers 10, 11, 12/97 which determine the new profit ratios and the obligatory reserves on the savings of the commercial banks and the Central Bank.

The decrees exempted three Islamic banks: the Islamic Bank of Sabaa, the Yemeni Islamic Bank, and the Tadamoun (Consolidation) Bank.

The Central Bank's governor said that these decrees aim to improve economic development and remove the effects of the slump which prevailed recently. He expected that these decrees will lead to strengthening the role of the private and banking sectors in investment and revive the economy within the economic reform program currently underway in Yemen.