'Financial system needs liquidity'

The UAE government should pump liquidity into the financial system on a regular basis in the next two years to bolster the economy, a leading banker told Gulf News.

Adnan Ahmad Yousuf, President and CEO of Albaraka Banking Group and the head of Arab Banks Union, said: "I think the economic situation will improve this year. However, if the government fails to inject regular doses of capital into the financial system, the situation will be critical by 2010-11.

Yousuf said: "The UAE Central Bank's initiative of pumping a large volume of capital into the financial system has been the best in the GCC, but the economic downturn will not end without the persistent support of the government in ensuring the flow of liquidity into the market."

Also see http://rupertbumfrey.blogspot.com/2009/09/industry-chief-urges-central-banks-to.html