The Yemeni Banking Sector: Challenges and Remedies

Name of Author : Mohammed M. H. Qasabah & Dr. Abbokar Siddiq

Abstract: On March 26, 2015, a Saudi led coalition launched a war on Yemen, causing the banking sector in Yemen to face a series of challenges and an ongoing economic collapse. The purpose of this study is to find out the challenges facing the Yemeni banking sector in light of the ongoing war in the country and to identify the remedies and recommendations that must be followed to overcome these challenges. This study identified several challenges facing the Yemeni banking sector, which are the cash liquidity crisis and the split of the monetary authority represented by the division of the central bank between the authority in Sanaa and the authority in Aden and the frozen assets, then the collapse of confidence with the international financial system and the deterioration of the Yemeni Rial exchange rate. This study has attempted to identify the remedies and recommendations that must be taken immediately to overcome the challenges.

Keywords : Banking, Challenges, Economy, Crisis, Remedies

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