GCC-economy.

GCC Countries to Create Banking Alert System against Future Financial Crises

Gulf Cooperation Council (GCC) countries are planning to create an alert system to strengthen the supervision and control of their banks to ensure they are better protected against possible financial crises in the future, the pan-Arab daily AL HAYAT reported Wednesday. Speaking after the council's meeting in Abu Dhabi Tuesday, the head of Oman's Central Bank, Hamood Sangour al-Zadjali, said GCC governors have discussed the project and agreed to hold additional meetings on the subject. Zajdali stated that "banks have to bear responsibility of their decisions regarding extending credit to their customers, whether they are nationals or foreigners." He noted that banks must take financial precautionary measures and must not rely on government aid when their customers fail to fulfill their loan repayment obligations, adding that banks should protect their customers' savings even if it affects their profitability, according to AL HAYAT. Discussions of the council's meeting also addressed coordination strategies between GCC monetary authorities regarding the banking sector. The GCC comprises Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates.