THE ARAB MONETARY FUND IN COOPERATION WITH THE INTERNATIONAL MONETARY FUND'S CENTER FOR ECONOMICS AND FINANCE IN THE MIDDLE EAST

by **claud39** Tue Mar 23, 2021 1:30 pm

THE ARAB MONETARY FUND IN COOPERATION WITH THE INTERNATIONAL MONETARY FUND'S CENTER FOR ECONOMICS AND FINANCE IN THE MIDDLE EAST
2021-03-22

Organizes a remote course on " Financial Safety Indicators "

Abu Dhabi - United Arab Emirates

The online training course on " Financial Safety Indicators " organized by the Training and Capacity Building Institute of the Arab Monetary Fund in cooperation with the International Monetary Fund's Center for Economics and Finance in the Middle East opened today , during the period 22-25 March 2021, through the method of distance training adopted by the Fund. As a continuation of his training activity.

In light of the liberalization of financial markets and the consequent inflows of capital and awareness of the importance of systemic risks to financial systems, there has become great interest by decision-makers in the importance of collecting proactive information for relevant indicators to ensure the stability of the financial system. Financial health indicators are the most important tools through which the financial system is monitored to see the extent of this system's ability to deal with fluctuations in the movement of capital. The course seeks to introduce concepts and definitions related to these indicators and to identify sources of data, as well as to learn about the methods used in the process of collecting this data and methods of dissemination.

The importance of financial soundness indicators is reflected in their ability to describe the situation of the financial sector and the extent of its safety in the country concerned, in order to enable decision-makers to deal with weaknesses and address them in a timely manner, thus avoiding the occurrence of financial crises similar to those that occurred recently. There is no doubt that these indicators work as an early warning bell, allowing some time to proactively, scientifically and thoughtfully deal with the challenges that the economy faces, and correct its course, as experiences have taught us that the time, effort and money required to deal with financial crises when they occur far exceeds what we can bear to set up a warning system. Early to deal with such crises.

On this occasion, in the speech of His Excellency Dr. Abdul Rahman bin Abdullah Al Hamidi, Director General and Chairman of the Board of Directors of the Arab Monetary Fund:

Sisters and Brothers

I am pleased to welcome you to the beginning of the online training course on “ Financial Safety Indicators ” organized by the Institute for Training and Capacity Building at the Arab Monetary Fund in cooperation with the International Monetary Fund’s Center for Economics and Finance in the Middle East, hoping that you will achieve the desired goals of deepening your knowledge on this topic Important.

Sisters and Brothers

In light of the liberalization of financial markets and the consequent inflows of capital and awareness of the importance of systemic risks to financial systems, there has become great interest by decision-makers in the importance of collecting proactive information for relevant indicators to ensure the stability of the financial system. Financial health indicators are the most important tools through which the financial system is monitored to see the extent of this system's ability to deal with fluctuations in the movement of capital. The course seeks to introduce concepts and definitions related to these indicators and to identify sources of data, as well as to learn about the methods used in the process of collecting this data and methods of dissemination.

Financial health indicators are divided into substantial and desirable indicators. The material indicators address those related to depository institutions such as capital adequacy, asset quality, profitability, liquidity, and sensitivity to market risks. The desirable indicators are those related to depository institutions and other financial institutions, as well as non-financial institutions, the family sector, in addition to the liquidity of the stock market and real estate markets. For example, we find that these recommended indicators are:

The ratio of capital to assets.
Geographical distribution of the total loan portfolio.
The ratio of other financial institutions' assets to GDP and the ratio of their assets to total financial system assets.
Indebtedness and profitability ratios for the non-financial corporate sector.
Financial sector debt to GDP ratios.
Daily circulation ratios for the stock market.
Real estate price ratios, and real estate loans to total loans.

Sisters and Brothers

The importance of financial soundness indicators is reflected in their ability to describe the situation of the financial sector and the extent of its safety in the country concerned, in order to enable decision-makers to deal with weaknesses and address them in a timely manner, thus avoiding the occurrence of financial crises similar to those that occurred recently. There is no doubt that these indicators work as an early warning bell, allowing some time to proactively, scientifically and thoughtfully deal with the challenges that the economy faces, and correct its course, as experiences have taught us that the time, effort and money required to deal with financial crises when they occur far exceeds what we can bear to set up a warning system. Early to deal with such crises.

Sisters and Brothers

In light of the foregoing, the course aims to provide you with concepts, definitions, sources and methods of compiling financial safety indicators and means of disseminating them in accordance with the " Manual for the Compilation of Financial Safety Indicators " issued by the International Monetary Fund. The course is practical in nature and will focus on the following situations:

What are the indicators, how to analyze them, and their relationship to financial sector supervision.
How to collect, derive and publish financial safety indicators data.
Preparing sector data and compiling financial health indicators.

The session will also deal with the experiences of countries and the challenges they face in compiling these indicators through participants ’presentations and their presentation of the state of their countries.

Sisters and Brothers

In conclusion, we are pleased with the participation of distinguished experts with experience in the field of statistics who will present the course. He also wished to commend the constructive and fruitful cooperation with the International Monetary Fund's Center for Economics and Finance in the Middle East, hoping and looking forward to the continuation of the cooperation.

I wish you a successful course and may God protect you wherever you are.

Peace, mercy and blessings of God.

https://www.amf.org.ae/ar/content/%D8%B5%D9%86%D8%AF%D9%88%D9%82-%D8%A7%D9%84%D9%86%D9%82%D8%AF-%D8%A7%D9%84%D8%B9%D8%B1%D8%A8%D9%8A-%D8%A8%D8%A7%D9%84%D8%AA%D8%B9%D8%A7%D9%88%D9%86-%D9%85%D8%B9-%D9%85%D8%B1%D9%83%D8%B2-%D8%B5%D9%86%D8%AF%D9%88%D9%82-%D8%A7%D9%84%D9%86%D9%82%D8%AF-%D8%A7%D9%84%D8%AF%D9%88%D9%84%D9%8A-%D9%84%D9%84%D8%A7%D9%82%D8%AA%D8%B5%D8%A7%D8%AF-%D9%88%D8%A7%D9%84%D8%AA%D9%85%D9%88%D9%8A%D9%84-%D9%81%D9%8A-%D8%A7%D9%84%D8%B4%D8%B1%D9%82-%D8%A7%D9%84%D8%A7%D9%88%D8%B3%D8%B7-28