Jordan Times
Tuesday, December 7, 1999
Arab Bank supports economy
AMMAN (J.T.) — The Arab Bank is committed to supporting the Jordanian economy and its various institutions as well as industry, trade and services, according to the bank's chairman of the board, Abdul Majeed Shoman.
“The Arab Bank will give priority to those economic sectors that are achieving growth and those that create job opportunities as well as those sectors that enable Jordan to increase its exports,” said Shoman at the opening session of a general bank meeting to discuss the bank's budgets in Jordan and Palestine for 2000.
Shoman said “the intensified rivalry in the banking business requires from us to develop and promote banking services to the clients.” He stressed that the rivalry should lead to an improvement of the banking industry.
According to the bank's deputy Abdul Hameed Shoman the bank is facing numerous challenges requiring sound policies and effective measures that should be taken in the next few years.
He said the globalisation of markets is bound to lead to further competition and a decrease in the margin of profits of various banks. Such a situation could prompt smaller banks to resort to merge forming larger financial institutions capable of confronting these challenges.
“The developments in the Middle East peace process will have effects on the financial institutions and banks operating in the region,” he said.
The Arab Bank is planning to restructuring its operations in Europe, create a special unit to deal with possible risks and reorganise clients' services. Shoman also said that there is an increased demand on the bank to invest in the information technology field.
According to Shoman the Arab Bank expects its 1999 net profit to increase by five per cent over the profits of the previous year.