In light of the economic and financial repercussions taking place in the countries of the world related to the Corona virus, and the challenges and financial burdens to face its effects on financial stability, many central banks and Arab monetary institutions have taken incentive and preventive measures to preserve, on the one hand, the durability and continuity of the financial sector in accordance with the rules of proper financial and banking work and to maintain On the sustainability of the business sector, especially micro, small and medium enterprises, and in this context, the Arab Monetary Fund issued a report monitoring the most important measures taken by central banks and Arab monetary institutions on the subject.
The report shows the efforts of central banks and Arab monetary institutions in coordination with governments in taking the necessary measures to contain the repercussions of the virus on financial stability and its implications for the economies of Arab countries and their financial markets, through influences on a number of economic sectors, the most important of which are industry, energy, tourism, foreign trade, internal, transport, health, and education. Which posed a challenge for policy makers to continue to drive development in their countries.
In the same context, the central banks and Arab monetary institutions have taken immediate measures since the beginning of the crisis, aimed at preserving the integrity and durability of the financial sector and its continuity in accordance with recognized good practices. The measures taken also support the opportunities of business and corporate sustainability, especially the MSMEs, in addition to To protect individuals from the risks of default and their ability to pay, in order to maintain their credit rating.
The central banks and Arab monetary institutions worked to take incentive and preventive measures in their countries, which included pumping liquidity in the banking sector by reducing the prices of monetary policy tools and mandatory cash reserves, as well as strengthening the loan guarantee system in support of the productive sectors, which helped the banking sector to defer loans Individuals and companies, as well as the central banks and Arab monetary institutions have adopted support programs for the productive sectors with a view to their sustainability. As for the overall precautionary policy tools, the central banks and Arab monetary institutions have sought to liberalize or mitigate some of them, in addition to other measures represented in placing restrictions on the distribution of profits Annual bonuses and bonuses, coincided with measures in financial policy to support the real economy.
Dr. Abd al-Rahman bin Abdullah Al-Hamidi, Director General of the Arab Monetary Fund Board of Directors, expressed his pleasure to release the report, which aims to highlight the role and efforts of central banks and Arab monetary institutions in enhancing financial stability and assessing systemic risks in the financial sector in general and banking in particular, including It supports the role of the financial sector in achieving sustainable development.