Tuesday 19 March 2019

Arab Bank ...facing US lawsuit.

Jordan backs Arab Bank after Hamas case

AMMAN, September 23, 2014

Jordan's central bank said it backed Arab Bank was confident in its ability to defend itself against a US ruling which found the country's top lender liable for financing Islamic militant group Hamas.

The US civil lawsuit brought against the Jordan-based bank has been described by lawyers as the first of its kind to reach trial. Jurors found the bank liable for giving material support to Hamas and said it must compensate victims of two dozen attacks attributed to the group in Israel and the Palestinian territories.

"The Central Bank of Jordan remains confident about the strength of Arab Bank's banking operations and compliance procedures and ability to withstand the likely repercussions of this litigation," Ziyad Fariz, Jordan's central bank governor said in an interview.

Jurors needed less than two days of deliberations to reach their verdict after a six-week trial in Brooklyn federal court.

Arab Bank has said it will appeal the verdict.

Jordan's central bank had extended strong backing for Arab Bank since the case against it was filed in 2004, "offering support and assistance", Fariz said that stemmed from the government's confidence in the bank, a main pillar of the financial system with an over $46.4 billion balance sheet.

Arab Bank, a leading Middle East financial institution, with a solid reputation that applies the best international banking practices, enjoyed "a strong level of capitalisation with a capital adequacy ratio of 15 percent and very strong liquidity position," Fariz added. - Reuters

Tags: Jordan | Hamas | Lawsuit |

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