Jordan's banks need to prove their worth
Banks need to fuse commercial, social market presence
Click here to add Al Zu as an alert
Disable alert for Al Zu,
Click here to add AMMAN as an alert
Disable alert for AMMAN,
Click here to add Aqaba as an alert
Disable alert for Aqaba,
Click here to add Irbid as an alert
Disable alert for Irbid,
Click here to add Marcus Bailey as an alert
Disable alert for Marcus Bailey,
Click here to add Princess Basma Hospital as an alert
Disable alert for Princess Basma Hospital,
Click here to add Standard Chartered as an alert
Disable alert for Standard Chartered,
Click here to add Standard Chartered Bank as an alert
Disable alert for Standard Chartered Bank,
Click here to add University of Jordan as an alert
Disable alert for University of Jordan,
Click here to add Zarqa as an alert
Disable alert for Zarqa
Financial institutions, especially banks, have to prove that they are both economically and socially useful to continue to have a place in the market, according to Marcus Bailey, head of regions-Europe, Middle East and Americas corporate affairs at the Standard Chartered Bank.
“Besides their commercial value, they need to have a social purpose such as contributions to support local communities in cooperation with government entities and through consulting with NGOs,” he told The Jordan Times in an interview on Sunday.
“Banks have learned many lessons in various aspects and the coming two years are going to be critical for their survival,” Bailey said. “The next two years will see the greatest changes. After that, the market will witness an era of evolution.”
He expected the number of banks in Jordan to decline saying: “Local banks which have learned about the importance of strong governance or adapted to that, and which have acquired an understanding of the culture will succeed.”
“It is important to do the right thing and to increase customers’ consideration of a bank”, he added, highlighting the importance of ensuring cost-effective policies that are in line with local needs.
Zu’bi Al Zu’bi, chairman of the University of Jordan business management department, shared the idea that banks have to provide social services to the community to establish strong grounds and to remain in business on the long run.
He commended banks’ efforts to reach the community and to ensure sustainability through their various operations, but conceded that their efforts were still much below the desired level.
“So far, banks have failed to actually reach individuals. They have rendered few services to the community to serve their commercial purposes, while they should provide real services, especially since revenues used for corporate responsibility programmes are tax-deductible,” Zu’bi elaborated.
Zu’bi indicated that “until now, local banks’ contribution to community services does not exceed 1 per cent of their revenues which are huge, in the absence of progressive taxes”.
Bailey reiterated that the bank makes use of technical expertise to arrive at real needs, citing Standard Chartered’s mobile eye clinic that was donated to the Royal Medical Services and operated at Princess Basma Hospital in Irbid.
This initiative seeks to reduce Diabetic Retinopathy, a disease which leads to blindness, he pointed out.
He also highlighted the bank’s endeavours to promote “financial literacy”, besides its continued follow-up of its community initiatives.
In terms of fighting financial crime, he said that the bank has strict policies and it would turn down deals that are inappropriate.
The bank observes local besides home-regulations, which are of the United Kingdom, he added.
Bailey was in Jordan on Sunday on a brief visit to check on the corporate social responsibility programmes of the bank, which has branches in Amman, Irbid, Aqaba and Zarqa.
- Yemen Central Bank headquarters to relocate from Sanaa to Aden
- Show me the money: Lebanon addresses bank transfer delay problems
- Swiss Leaks revisited: Strong Egyptian presence in banking scandal
- Saudi market plans IPO in 2018
- Understanding the ripple effect: 8 reasons the US economy has slowed down in Q1 of 2015
- Jordan Ahli Bank sponsors annual event geared toward individuals with special needs
- Jordan Dubai Islamic Bank signs agreement with Visa Jordan
- Needed changes to Jordan's financial market
- Saudi Arabia at forefront of fighting financial crimes
- Jordan Ahli Bank sponsors “Ayman Dais Academy” basketball tournament