Dinar Daily
Would you like to react to this message? Create an account in a few clicks or log in to continue.

Get Daily Updates of the NEWS & GURUS in your EMAIL
CHECK YOUR EMAIL for VERIFICATION

Enter your email address:

THE ARAB MONETARY FUND ISSUES A STUDY ON “BANKING COMPETITION AND FINANCIAL INCLUSION” DinarDailyUpdates?bg=330099&fg=FFFFFF&anim=1

THE ARAB MONETARY FUND ISSUES A STUDY ON “BANKING COMPETITION AND FINANCIAL INCLUSION”

Go down

THE ARAB MONETARY FUND ISSUES A STUDY ON “BANKING COMPETITION AND FINANCIAL INCLUSION” Empty THE ARAB MONETARY FUND ISSUES A STUDY ON “BANKING COMPETITION AND FINANCIAL INCLUSION”

Post by claud39 on Tue Jun 09, 2020 12:59 pm

THE ARAB MONETARY FUND ISSUES A STUDY ON “BANKING COMPETITION AND FINANCIAL INCLUSION”



2020-06-08




THE ARAB MONETARY FUND ISSUES A STUDY ON “BANKING COMPETITION AND FINANCIAL INCLUSION” Logo-ar











The Arab Monetary Fund launches a study on
Banking competition and financial inclusion
The reforms adopted over the past ten years have contributed to the further opening of the banking sector
Arab countries with diversified banking structures have greater levels of financial inclusion
Arab countries with lower levels of banking concentration (higher banking competition) registered greater access for individuals and projects to financial services
The development of banking infrastructure, the systems of credit reporting, financial education, and the development of business environments provide factors for banking competition and financial inclusion
The importance of continuing to adopt reforms aimed at enhancing banking competition, according to the specificity of the economic and banking situation of each Arab country, with a focus on modern financial technologies as one of the most important directions supporting banking competition and financial inclusion


In the context of its keenness to develop its research activities, the Arab Monetary Fund issued a study on "Banking Competition and Financial Inclusion" that focused on examining a number of issues related to banking competition in Arab countries, whether with regard to the determinants of the market structure, or the behavior of the banking market represented in pricing decisions, or others Other determinants and their effects on the level of financial inclusion, based on the results of a questionnaire conducted by the Arab Monetary Fund to monitor a set of data related to banking competition in the Arab countries during the period (2010-2019).

The study clarified the divergent evidence included in previous economic contributions regarding the role of banking competition in supporting financial inclusion. While some studies have found a direct relationship between banking competition and financial inclusion, other studies have indicated that increased competition intensity may not necessarily lead to increased levels of financial inclusion, but may increase financial risks as financial institutions rush to high-risk lending.

 On the other hand, and facing these two trends, another group of studies sees the importance of a number of other factors that determine the nature of the relationship between banking competition and financial inclusion, including, for example, the level of progress of financial infrastructure, financial development, the availability of credit information, and financial education And the evolution of business environments.

In light of the above, the study concluded the following main conclusions:


  • Banking markets in the countries included in the questionnaire are considered monopolistic competition markets, as is usual in the banking market, whether based on market structure indicators or market behavior indicators, which means that there are a few banks competing with each other to win a larger market share.



  • The reforms adopted in the Arab countries contributed to the further opening of the banking sector and its attraction to many local and foreign investors, and the presence of Shariah-compliant banks alongside traditional banks, which helped to increase levels of diversification of the structure of the banking sector.



  • Arab countries with the most diversification levels in the structure of the banking sector, measured by the proportion of the largest representation of private and foreign banks, and Shariah-compliant banks, recorded greater levels of individuals and projects' access to financing, led by Bahrain, Saudi Arabia and Kuwait.



  • Arab countries with lower levels of banking concentration (higher levels of banking competition) recorded greater levels of financial inclusion, led by Bahrain, which recorded the highest level of banking competition and the highest level of financial inclusion for individuals and projects, reaching 82.6% and 25.2%, respectively, according to data Arab Monetary Fund Questionnaire.



  • The relationship between banking competition and financial inclusion depends on a number of determinants, where both the evolution of banking infrastructure and the availability and depth of credit information systems have played, and business environments play a role in strengthening the relationship between banking competition and financial inclusion in Bahrain, Saudi Arabia, Kuwait and Lebanon.




Based on the above, the study concluded some recommendations regarding the policy-making process, including:

  • The supervisory authorities in the Arab countries focus on adopting policies to increase levels of banking competition, so that these policies are one of the main pillars included in financial inclusion strategies.



  • Eliminate restrictions on the practice of banking business by foreign investors and the private sector, and privatize losing public banks to reduce levels of banking dominance and expand the provision of more financial services more efficiently.



  • Adopting regulatory and supervisory requirements aimed at urging banks to increase levels of diversification of banking services, and ensuring fair pricing for banking services to reduce the negative effects of reduced banking competition on financial inclusion.



  • Providing a nurturing environment to encourage modern financial technology companies, which is one of the most important current trends to increase levels of banking competition and financial inclusion.



  • Strengthening efforts in the Arab countries to support banking competition and financial inclusion by developing payment systems, credit inquiries, secured lending, movable asset records and bankruptcy systems.



  • Requiring financial service providers to adopt measures to ensure the interoperability of the systems, whether at the level of the banking sector or at the level of financial services providers from outside the sector to deepen the banking contribution and increase levels of financial inclusion, especially digital financial inclusion.


 
The full version of the study is available at this link






claud39
claud39
VIP NewsHound
VIP NewsHound

Posts : 16590
Join date : 2018-11-04

View user profile

Back to top Go down

THE ARAB MONETARY FUND ISSUES A STUDY ON “BANKING COMPETITION AND FINANCIAL INCLUSION” Empty GOALS AND MEANS

Post by claud39 on Tue Jun 09, 2020 1:08 pm

GOALS AND MEANS
THE ARAB MONETARY FUND ISSUES A STUDY ON “BANKING COMPETITION AND FINANCIAL INCLUSION” Logo-ar










The Arab Monetary Fund is a regional Arab financial institution that was founded in 1976, and started to operate in 1977, and the number of its member states is 22 Arab countries, namely: 

Jordan, United Arab Emirates, Bahrain, Tunisia, Algeria, Djibouti, Saudi Arabia, Sudan, Syria, Somalia, Iraq, Sultanate of Oman, Palestine, Qatar, Kuwait, Lebanon, Libya, Egypt, Morocco, Mauritania, Yemen, Republic of the Moon.


Fund goals


The fund aims to contribute to achieving the following objectives:

[list="color: rgb(0, 0, 0); box-sizing: border-box; margin-bottom: 10px;"]
[*]Correcting the imbalance in the Member States' balance of payments
[*]Work to remove restrictions on current payments between member states
[*]Establishing policies and methods for Arab monetary cooperation
[*]Provide advice, upon request, in relation to foreign investment policies
[*]Development of Arab financial markets
[*]Work to create conditions conducive to creating a unified Arab currency
[/list]


Means of achieving the goals of the fund


In order to achieve its goals, the fund depends on the following means

[list="color: rgb(0, 0, 0); box-sizing: border-box; margin-bottom: 10px;"]
[*]Providing short and medium term facilities to member states to help finance the total deficit in their balance of payments
[*]Coordination of monetary policies of member states and the development of cooperation between the monetary authorities in these countries
[*]Liberalization and development of trade exchanges and current and related payments, and encouraging the movement of capital between member states
[*]The Fund allocates enough of its resources paid in the currencies of the member states to provide the necessary credit facilities to settle the current payments between member states in accordance with the rules and regulations approved by the Board of Governors and within the framework of a special account opened by the fund for this purpose.
[*]Managing any funds pledged to it by a Member State or Member States for the benefit of other parties
[*]Holding periodic consultations with member states on their economic conditions and the policies that they pursue in a manner that helps achieve the goals of the fund and the countries concerned
[*]Carrying out the necessary studies to achieve the fund's goals
[*]Providing technical assistance to the monetary and banking systems in the member countries
[/list]



Member States shall cooperate with each other, and with each other, and the Fund to achieve its objectives. Each member in particular shall:
[list="color: rgb(0, 0, 0); box-sizing: border-box; margin-bottom: 10px;"]
[*]Reducing restrictions on current payments between member states, as well as restrictions on the movement of capital and its returns between them, with the aim of eliminating the restrictions mentioned altogether
[*]Working to achieve the necessary amount of coordination between the policies, especially the financial and monetary ones, in a way that serves Arab economic integration and helps create conditions for the creation of a unified Arab currency.
[/list]



The Fund cooperates with similar Arab institutions in achieving its objectives, and cooperates with similar international organizations when necessary.
The fund provides technical assistance and services in the monetary and financial fields to member states that conclude economic agreements aimed at reaching a monetary union between them as a stage of achieving the goals of the fund.
The Fund, by a decision of the Board of Governors, shall use any other means to help achieve its objectives.
 

THE ARAB MONETARY FUND ISSUES A STUDY ON “BANKING COMPETITION AND FINANCIAL INCLUSION” Application-pdf Agreement establishing the Arab Monetary Fund









https://www.amf.org.ae/ar/aboutamf
claud39
claud39
VIP NewsHound
VIP NewsHound

Posts : 16590
Join date : 2018-11-04

View user profile

Back to top Go down

Back to top


 
Permissions in this forum:
You cannot reply to topics in this forum