Sudan: Prerequisites to restore confidence in banking system in Sudan

Restoring confidence in the banking system cannot be achieved urgently at the moment, because it requires broad policies and procedures that have long-term effects, said Dr. Mohamed Kheir Hassan, the Dean of the Faculty of Economics and Political Science at Omdurman Islamic University.

In a statement to (SUNA), Dr. Kheir called for providing banking services using modern and fast technology to serve all sectors of customers and expatriates in particular, urging the Central Bank of Sudan (CBOS) to support banks by opening investment fields, lifting restrictions and adopting strict policies to form banking entities with strong positions through the application of Banking Merging System. The Dean of the Faculty of Economics and Political Science at Omdurman Islamic University said that the creation of attractive banking services and increasing the margin of seriousness (installment advance payment) on Murabaha will support liquidity in the banking system, referring to the need to introduce measures that are fair in allocating or distributing the profits of depositors with the adoption of financial and moral incentive systems for both customers and employees, who contribute to attract deposits to their banks, referring to the need to activate the capabilities of the Deposit Insurance Corporation in order to deepen confidence in the banking system, stressing the need to continue policies to curb inflation and work to harmonize fiscal and monetary policies.

Dr. Kheir summarized the reasons for loss of confidence in banks in the instability and volatility of monetary and fiscal policies and fear of the erosion of funds as a result of increasing inflation rates, in addition to low banking awareness in many areas of Sudan, besides the lack of customers confidence in the confidentiality of their deposits, particularly in relation to their fear of disclosure to the Tax Chamber. Dr. Kheir pointed out to the existence of good investment opportunities in Sudan with a higher return than the profitability of the banking system in the areas of transport, land, real estate and speculation in foreign exchange in the parallel market, in addition to some customers' fears of past policies and negative experience during the change of currency and society's view of banks on the grounds that they have a riba-based legacy and a focus of embezzlement... Read more on All Africa

Source: All Africa