According to an official report issued by the Central Bank of Yemen (CBY), activities of local private sector recorded an increase in receiving loans and finances provided by Commercial and Islamic Banks operating in Yemen during 2008 reached to YER 418.4 billion compared to YER 359.7 billion of 2007 with 16.3% rate increase for YER 58.7 billion.  As per the said report and to the consolidated balance sheet of Yemeni Banks issued by the CBY obtained by Saba News Agency, indicated that in 2008 trade finance activities have accounted for 52.9% out of the whole finance and finance portfolio for YER 221.2 billion, followed by financing of industry with 18.8% for YER 78.7 billion, financing of construction and reconstruction projects with 5.6% for YER 23.5 billion, and financing of agriculture and fisheries sector with 1.4% for YER 5.7 billion while other proportion of loans distributed to other activities.

The report highlighted to the perceptible improvement to the continuous role of Yemeni banks in financial brokerage supposing this improvement to the procedures were taken by the Central Bank of Yemen to reduce reserves ratio in local currency from 10% to 7%, and without interest which facilitated liquidity within the banks and enabled them to increase lines of lending and investing. The report also specified that `in 2008 ratio of loans and finances/deposits decreased to 33.9% compared to 34.1% in 2007, and the share of commercial banks in finance and loans portfolio reached to 60.1% while Islamic banks obtained 39.9%, as well as in 2008 ratio of loans and finances lent to customers in local currency and foreign currencies increased; the Yemeni riyal increased to YER 198 billion compared to YER 162.3 billion in 2007 with 22% increase, the foreign currencies lending increased from YER197.4 in 2007 to YER 220.4 in 2008 with 11.7% increase rate.

The report also illustrated that the largest increase in lending and financing was recorded by the Cooperative & Agricultural Credit Bank (CAC Bank), which increased its finances during last year by YER 20.9 billion with a growth rate of 46.5% followed by The Arab Bank with an increase of YER 11.5 billion with a growth rate of 27.9%, the International Bank of Yemen for YER 11.3 billion and Saba Islamic Bank for YER 10.3 billion. It pointed out to the remarkable expansion witnessed by the banking sector in Yemen, where the total of its consolidated budget increased from YER 1,271 billion in 2007 to YER 1,511.2 billion last year by an increase of YER 240.2 billion with a growth rate of 18.9%.

Finally, the report stated that during 2008 the activities of national banks grew at a higher rate than Arab and foreign banks as the national banks accounted for 75% of total banking activity and 25% for Arab and foreign banks. The growth rate of national banks was 20.4% while foreign banks grow for 14.6% as well as commercial banks contributed to 70.7% and Islamic banks with 29.3% of the total consolidated bank balance sheet at the end of December 2008.