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THE ARAB MONETARY FUND ORGANIZES THE TWELFTH REMOTE MEETING OF THE FINANCIAL STABILITY WORKING GROUP IN THE ARAB COUNTRIES DinarDailyUpdates?bg=330099&fg=FFFFFF&anim=1

THE ARAB MONETARY FUND ORGANIZES THE TWELFTH REMOTE MEETING OF THE FINANCIAL STABILITY WORKING GROUP IN THE ARAB COUNTRIES

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THE ARAB MONETARY FUND ORGANIZES THE TWELFTH REMOTE MEETING OF THE FINANCIAL STABILITY WORKING GROUP IN THE ARAB COUNTRIES Empty THE ARAB MONETARY FUND ORGANIZES THE TWELFTH REMOTE MEETING OF THE FINANCIAL STABILITY WORKING GROUP IN THE ARAB COUNTRIES

Post by claud39 on Fri Sep 04, 2020 9:54 am

THE ARAB MONETARY FUND ORGANIZES THE TWELFTH REMOTE MEETING OF THE FINANCIAL STABILITY WORKING GROUP IN THE ARAB COUNTRIES


2020-09-02



THE ARAB MONETARY FUND ORGANIZES THE TWELFTH REMOTE MEETING OF THE FINANCIAL STABILITY WORKING GROUP IN THE ARAB COUNTRIES Logo-ar





Wednesday and Thursday 2 and 3 September 2020
15:00 to 17:30 Abu Dhabi time
The team discusses:
The optimal application of macroprudential policy
The implications of the Coronavirus for financial stability and preparation for the post-crisis withdrawal phase
The implications of abandoning the benchmark interest rates Libor and EIBORS
Liquidity coverage ratio and net stable financing
Risks of family businesses and non-financial companies
Sustainable finance and stable digital currencies
The basic principles of deposit insurance institutions for Islamic banks
A framework for assessing and mitigating systemic risks related to the insurance sector
Preparing for the Arab Financial Stability Report for 2021
 
Today, Wednesday, noon, the twelfth periodic meeting of the Financial Stability Working Group in the Arab Countries, which is held remotely, opened in light of the emerging Corona virus crisis. It is noteworthy that the team emanates from the Board of Governors of Central Banks and Arab Monetary Institutions, and includes in its membership the directors of the financial stability departments of these banks and institutions, in addition to the Arab Monetary Fund, which is responsible for its technical secretariat.

 The team’s meeting will also be attended by representatives of regional and international institutions such as the International Monetary Fund, the World Bank, the Financial Stability Board, the Bank for International Settlements, the Institute for Financial Stability, the Basel Committee on Banking Supervision, the International Federation of Deposit Insurance Institutions and the International Federation of Insurance Supervisory Authorities.

The team contributes to developing policies and tools related to enhancing financial stability in Arab countries, and exchanging expertise and experiences among themselves in this regard. The team’s tasks also include preparing the financial stability report in the Arab countries, preparing working papers and studies on the financial stability conditions in the Arab countries, in addition to contributing to enhancing awareness of financial stability issues through holding seminars and workshops and issuing relevant periodic reports.

 In the meeting, the team will discuss a number of important topics that keep pace with the latest developments related to financial stability issues, such as the implications of the emerging corona virus crisis on financial stability, preparation for the post-crisis withdrawal phase, and the implications of climate change and natural disasters on financial stability, in addition to discussing the latest related developments. By abandoning reference prices, LIBOR and EIBORS, and its effect on financial sectors business models.  

The meeting topics also include discussing the overall stress tests and the experiences of Arab countries in this regard, as these tests are considered important tools for managing risks and measuring the ability of the banking sector to withstand potential shocks. 
The team will discuss the experiences of a number of Arab countries in terms of applying liquidity tools, especially the ratios of liquidity coverage and net stable financing. The team’s program also includes many new topics that concern financial stability issues in Arab countries, such as stable digital currencies, the risks of non-financial companies including family companies, the credit environment in Arab countries and its impact on financial stability, the risks of the non-banking financial sector, and a framework for assessing And reduce risks related to the insurance sector.

The meeting will also discuss a number of working papers, including: the risks of concentration in the banking sector, the impact of climate change on financial stability, and the basic principles of deposit insurance institutions for Islamic banks. The team’s discussions also include the preparations for the 2021 Financial Stability Report in the Arab Countries, the report’s themes and the timetable for its issuance.

 Finally, the team will listen to a presentation from the Financial Stability Board on the latest developments related to the activities of the Council, especially the two topics of the repercussions of the Coronavirus and the implications of abandoning reference interest rates. In addition to listening to another presentation from the Basel Committee on Banking Supervision on the latest developments related to the committee's activities.

On this occasion, His Excellency the Director General, Chairman of the Board of Directors of the Arab Monetary Fund, Dr. Abdulrahman bin Abdullah Al-Hamidi referred to the great and increasing importance of issues related to financial stability, as maintaining financial stability in Arab countries has become a priority for central banks and Arab monetary institutions.

 His Excellency welcomed the important topics discussed by the team, in line with the priorities of Arab countries, expressing his happiness with the development witnessed in the Financial Stability Report and looking forward to the next year's report. His Excellency also affirmed the increasing interest shown by Excellencies, Governors of Central Banks and Arab Monetary Institutions, for the work of the team and the prominent role it plays in terms of exchanging experiences and expertise among Arab countries with regard to this important topic.

 It should be noted that the Arab Monetary Fund, within the framework of its role as the technical secretariat of the Board of Governors of Central Banks and Arab Monetary Institutions, is the team's secretariat. The fund’s tasks in this regard are based on preparing the agenda, contributing to studies and reports prepared by the committee, and following up on the team’s recommendations.



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THE ARAB MONETARY FUND ORGANIZES THE TWELFTH REMOTE MEETING OF THE FINANCIAL STABILITY WORKING GROUP IN THE ARAB COUNTRIES Empty THE ARAB MONETARY FUND ISSUES THE SECOND ISSUE OF THE "ARAB CAPITAL MARKETS MONTHLY BULLETIN"

Post by claud39 on Fri Sep 04, 2020 9:56 am

THE ARAB MONETARY FUND ISSUES THE SECOND ISSUE OF THE "ARAB CAPITAL MARKETS MONTHLY BULLETIN"
2020-09-03



THE ARAB MONETARY FUND ORGANIZES THE TWELFTH REMOTE MEETING OF THE FINANCIAL STABILITY WORKING GROUP IN THE ARAB COUNTRIES Logo-ar










The Arab Monetary Fund's Composite Index of Arab money markets registered an increase of 3.5 percent by the end of August 2020

The performance indicators of ten Arab stock exchanges improved as a result of the gradual recovery of economic activity, the relative rise in international oil prices, and improved levels of investor confidence.

The second issue of the newsletter confirms the importance of the market maker’s role in limiting unjustified price fluctuations and enhancing the liquidity and trading of Arab stock exchanges.







As part of its efforts to develop the financial sector in the Arab countries, the Arab Monetary Fund has issued the second issue of its "Monthly Bulletin of Arab Capital Markets". This bulletin is concerned with monitoring the most important developments in the Arab financial markets based on the Arab Monetary Fund database of Arab money markets, and data issued by Arab stock exchanges. The second issue of the bulletin indicated that the Arab Monetary Fund Composite Index for Arab financial markets recorded an increase of 3.53 per cent at the end of August 2020 compared to the end of July 2020, equivalent to 14.48 points, thus increasing the index from 410.13 points by the end of July to about 424.61 points. At the end of August, reflecting the improvement in several Arab markets in light of the gradual recovery of economic activity.



In this regard, ten Arab stock exchanges witnessed an increase in their performance indicators by the end of August of 2020 compared to July 2020, as the Dubai and Kuwait Stock Exchanges led the increases recorded in the performance indicators for August by 9.5 and 8.1 percent, respectively. The stock exchanges of Egypt, Bahrain and Saudi Arabia also continued their bullish performance, registering an increase of 7.23, 7.00 and 6.45 percent, respectively. The markets of Muscat, Qatar and Abu Dhabi also continued to achieve growth rates of about 5.71, 5.01 and 4.98 percent, respectively. Finally, the Iraq and Tunisia Stock Exchanges recorded increases of 3.93 and 2.88 percent. On the other hand, the performance indicators of five Arab stock exchanges witnessed a decline during the month of August, as the Palestine Stock Exchange recorded a decrease of 3.23 percent, followed by the exchanges of Casablanca, Damascus and Amman with decreases of less than one percent.



Arab stock exchanges have strengthened their efforts during the past month in the field of developing the legislative, supervisory and regulatory environment in support of the markets, by developing new mechanisms for the criteria for selecting eligible securities for the mechanism of borrowing for the purpose of sale, and adopting the review of the list of securities eligible for this after developing the criteria governing the selection process, as is the case in The Egyptian Stock Exchange. In order to provide the best mechanisms that help increase efficiency and effectiveness, the Qatar Stock Exchange has applied an electronic system to correct the transactions that were executed by mistake, in the investor number. Last month also witnessed the Abu Dhabi Securities Exchange announcing new measures to prevent rumors from influencing trading. In the same context, the Egyptian Stock Exchange introduced a new law for companies to be listed, related to the list of securities that are likely to be written off in the event that they do not comply with the rules of registration and disclosure, or that wish to voluntarily write-off.



The Arab stock exchanges also continued during the month of August their efforts to diversify the listed financial products. In this regard, the listing of digital bonds on the Dubai Financial Market was the first of its kind, in addition to the market trend to include green investment bonds. Last month also saw the Dubai and Abu Dhabi markets finish offering a new set of financial products, especially with regard to ETFs, real estate investment funds, and Sharia-compliant equity investment funds. It was also announced that trading in the financial derivatives market would begin in the Saudi Stock Exchange (Tadawul). In the same context, the first index measuring the performance of government bonds in the Saudi market was also launched.



Continuing its efforts to promote innovations in the field of modern financial technology, last month saw the financial market trend Saudi Arabia to start the experience of launching a platform for collective financing to invest in stocks ( the Equity Crowdfunding Details Platform ). Arab stock exchanges also continued their trend towards digital transformation, as the Dubai market relied on modern financial technologies to distribute profits to investors.



The market value of securities listed in the Arab stock markets improved in nine Arab stock exchanges, while it recorded a decline in four other Arab stock exchanges. The Kuwait Stock Exchange came at the forefront of the Arab stock exchanges, which witnessed a rise in the market value by the end of August 2020, as the market value of listed shares increased by 8 per cent, achieving gains estimated at 30.6 billion Kuwaiti dinars. This improvement came with the continued recovery of economic activities, the relative improvement in oil prices, and the improvement of confidence levels of many investors. The stock exchanges of Egypt, Dubai, and Bahrain continued their positive performance driven by the growth of banking, basic materials, and goods and services sectors, with an increase in market value ranging between 7.00 and 7.76 per cent, followed by the stock exchanges of Abu Dhabi, Saudi Arabia, Qatar and Muscat, to record gains of 6.37, 6.22 and 4. 0 and 2.26, respectively. Finally, the Beirut Stock Exchange registered a slight increase of 0.03 percent



On the other hand, four stock exchanges recorded a decline in their market value, on top of which was the Palestine Stock Exchange, where the market value of the market decreased by 2.47 percent during the month of August 2020, and the stock exchanges of Casablanca, Damascus and Amman followed, with a decrease of less than one percent.



The topic of the second issue of the monthly bulletin of Arab capital markets touched on the role of the market maker in the Arab financial markets, noting that financial markets play an important role in mobilizing savings and directing them to areas of investment required to support growth and create more job opportunities. However, these markets sometimes suffer from weak trading activity, lack of liquidity levels, and large fluctuations in the prices of listed securities without real justification, which leads to the absence of fair pricing mechanisms. From this standpoint comes the importance of the market maker’s activity that enables the markets to reach a state of balance between the levels of supply and demand for securities, narrowing the gap between the selling and buying prices, which limits price fluctuations up and down, and helps to stabilize them in the short and medium term, In addition to ensuring continued trading in the listed securities.



In this context, the second issue of the newsletter sheds light on a number of important global experiences in this context, among them the experience of the market maker in the New York Stock Exchange, London and Euronext, as well as a number of recent experiences of the market maker in some Arab financial markets, including Each of the UAE capital markets, the Saudi and Bahraini markets, the Kuwaiti and Egyptian stock exchanges, stressing the interest of the supervisory authorities to develop the role of the market maker in accordance with the best international practices by providing the legislative and regulatory environment that helps enhance the liquidity and trading of these markets.
 

The full version of the issue is available at this link 








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