The Arab Monetary Fund revealed that the banking sector in the Arab countries has overcome the crisis of the Coronavirus pandemic without significant negative effects on its financial positions, as the sector continued to attract liquidity and direct it to investment, which boosted Arab economic growth.
According to the Fund’s report on financial stability in the Arab countries 2022, the Arab banking system in the Arab countries was stable and generally able to withstand shocks despite the developments, challenges, and economic shocks that the world witnessed during the period from 2013 to 2021.
The banking system in the Arab countries has achieved good levels of capital, liquidity, asset quality and profitability, reflecting the supervisory authorities' policies and efforts to ensure the financial sector's safety and enhance financial stability. According to the Arab Monetary Fund, the average solvency ratio of Arab banks reached 17.8 percent in 2021 and 2020, up from 17.7 percent in 2019, compared to 16.9 percent in 2018.
Arab banks maintained good levels in the ratio of liquid assets to total assets, ranging between 27.3% and 34.5 percent. This indicator is one of the most important indicators that measure the ability of banks to fulfill their obligations by relying on high-quality and liquidable assets faster than other assets.
Source (Al-Sharq al-Awsat Newspaper, Edited)
