Head «International Union of Arab Bankers» Joseph Tarabay, that «stressed the shadow banking pose risks to the banking business, and thus threatening the entire financial stability». Describing them as «credit mediation work of the institutions and activities group, in whole or in part, outside the traditional banking system», adding that «high borrowing or reliance on leverage of these institutions rates, and the increasing gap between adversaries benefits and entitlements assets have, would lead to bankruptcy or find these non-bank financial institutions involved in such activities, and that drives the risk of infection in the financial markets and thus amplifying systemic risk. »
Tarabay called to be aware of the implications, and implications of this appeared in the collapse of the asset-backed securities markets, and based on the establishment of the debt in order to model the failure of redistribution. Also appeared in the collapse and bankruptcy of the cash market funds, and confusion in the markets re-purchase contracts, operations and lending of securities and bonds. The shadow banking remained, during the past period, operating under the rules and regulations less stringent and sometimes without supervision ».
Escape from regulation
He drew attention to the Tarabay «enables institutions even escape from traditional banking regulation, although some of the organizers convinced that she was behind the worsening global financial crisis». Explaining that «According to the statistics of the Financial Stability Board, the« Banking shadow »sector has seen strong growth since the beginning of the global financial crisis in 2007 to reach 67 trillion dollars in 2011. This refers to the seriousness of the system« Banking shadow activities », especially in the case of a liquidity squeeze with the transformation of lenders to escape scrutiny and review processes. » Stressing that «Although the« shadow banking »in the Arab countries, is still limited and restricted to certain activities and services activities. But it must be given due importance to this subject and expand poll circle of activities, financial services and non-bank credit all, and work to develop a regulatory framework commensurate with the part of the status of the financial sectors ».
And select Tarabay goal of the lighting on the subject, a «shed light on this activity, which became concerned about the world, and expressed the hope that deepen our knowledge of Besarfah shade and exploring the risks to our banks Arabic».
Fattouh: gravity «shadow banking»
For his part, Secretary General of the «Union of Arab Banks», Dr. Wissam Fattouh, said in a statement «ambassador» that «concerned Besarfah shadow institutions nature is unknown, may be registered but are not controlled», denying knowledge of «the number of this type of institutions in Lebanon », we read and see ads for financial loans from financial institutions, may be unknown and unrecorded, and what lends us in the real estate sector, and the fear that we get to what we have reached housing loans in the United States. The danger lies in the lack of knowledge of sources of funds and the lack of a client who borrow, which could lead to vibration control of the economy. And increases the fear and risk when we know the figure disclosed in the World Bank in terms of value, which increased between the years 2007 and 2011 to $ 67 trillion. Indication of the seriousness of the activities of «shadow banking system», especially in the case of a liquidity squeeze with lenders turned him to escape the scrutiny and review processes ».
Opened yesterday, «International Union of Arab Bankers» in cooperation with the Arab central banks, at the Radisson Hotel - Ain M'reisa «Banking Forum on the shadow banking in the Arab countries.» In the presence of officials from the Arab Bankers: Iraq, Sudan, Jordan, Lebanon, Qatar, Palestine and Syria.
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