Wissam Fattouh, the secretary general of the Union of Arab Banks (UAB), highlights two main priorities for the Arab banking sector. Firstly, he emphasizes the importance of aligning financial institutions with the UN’s Sustainable Development Goals, focusing on green finance and enhancing financial inclusion for small and medium enterprises, particularly for women and youth. Secondly, in light of economic crises in countries like Syria, Lebanon, and Yemen, his work aims to support the restructuring of banking systems through technical assistance and policy guidance.
Despite the varied landscape across Arab nations, Fattouh sees foundational similarities within the banking sector. All countries acknowledge the vital role that banking plays in economic growth and stability, sharing commitments to improve financial inclusion and adapt to digital finance. The UAB fosters collaboration to address challenges such as compliance with international regulations concerning financing for development and climate change, which affect the region collectively.
Fattouh points out that Arab banks possess significant strengths in the global finance arena, particularly their robust capitalisation and liquidity management. Their prudent risk strategies have helped them weather economic turmoil. The sector’s swift embrace of digital transformation, along with its involvement in regional trade finance, has solidified ties both locally and internationally.
Looking forward, Fattouh raises concerns about compliance with international banking regulations, especially around anti-money laundering and financing terrorism. Balancing regulatory demands with business growth is essential, as is strengthening resilience against geopolitical and economic uncertainties.
Specifically addressing Syria, Fattouh identifies the critical task of reintegrating its banks into the global financial system stymied by sanctions. Key challenges include aligning local regulatory frameworks with international standards and rebuilding necessary banking relationships. The UAB is committed to preparing for the bank’s reconstruction by partnering with stakeholders to provide essential support as the political climate stabilises.
Wissam Fattouh outlines two priorities for Arab banking: aligning financial institutions with UN Sustainable Development Goals and revitalising struggling banking systems in crisis-affected countries. He notes the sector’s strengths in capitalisation and digital transformation while keenly addressing compliance challenges. Specifically, he highlights the need to reintegrate Syria’s banks into the global financial system post-sanctions.
In summary, Wissam Fattouh underscores the UAB’s vital role in addressing both immediate and long-term challenges faced by the Arab banking sector. By focusing on sustainable economic growth, pushing for regulatory compliance, and preparing for reconstruction efforts in crisis-hit areas like Syria, the UAB seeks to enhance regional financial resilience. The collective strength of Arab banks, paired with ongoing reforms, positions the sector for future stability amid uncertainties.
Original Source: gfmag.com
