http://www.english.hadhramaut.info Only 4 per cent of Yemenis have accounts - Study finds [The Source: SANA'A/hadharamaut.info/sabanews.net - 09/01/2011] Only 4 per cent of Yemen's people have bank accounts, a recent study has said, adding that the low percentage is due to the country's backward financial system and cash economy. Also a small percentage, about 18 per cent, in the private sector can get funds or credit, and the two percentages affect modifying the interest rates and with the two factors the Central Bank of Yemen lacks a powerful cash tool, the study prepared by Malaysia's SIRIM Berhad Company and published in the London-based al Hayat Newspaper has said. Measures the CBY are taking to manage liquidity are restricted to issuing the certificates of deposit and treasury bonds and bills, nothing more …. with the banking sector in needs for huge improvements, it said.The banking sector in Yemen has a surplus liquidity but the country's banks usually give two-year loans, the study said, as it pointed out that Yemen, in the meantime, plans to restructure the banking sector and establish a stock market this year, with the aim to promote financial and administrative reforms."Yemen also has plans to mobilize resources from insurance and pension funds."The banking sector is unable to finance the private sector and prefers to deal with treasury bills, thought tn 2008, the credit-to-deposit ratio fell from 39.97 per cent to 29.8 per cent."Islamic banks, however, are exempt."The study also said that investment in treasury bills rose by 11 per cent to $ 1.4 billion, a sum which makes up 18 per cent of the overall assets of the banking sector and 63 per cent of credit in the country.Moreover, the country has family banks, and the role of the Central of Bank of Yemen in setting out the basic regulations is restricted and weak, especially when it comes to market discipline.