Jerusalem dynasty leaves Arab Bank
Published Friday 17/08/2012 (updated) 23/08/2012 18:57
The grandfather of the resigned chairman founded the bank in 1930
in Jerusalem. (MaanImages/File)
BETHLEHEM (Ma'an) -- The resignation of Arab Bank chairman Abed Hamid Shoman will have negative repercussions for the finance institution, Palestinian economists said on Friday.
The Shoman family, originally from Beit Hanina near Jerusalem, have been the corner stone of the Arab Bank since its founding over 80 years ago, economist Nasser Abdel Karim told Ma'an.
The former chairman, who resigned on Thursday, is the grandson of the Arab Bank's founder.
"The market has been negatively affected as the Arab Bank share price dropped nearly 4 percent on Thursday, but only after the Eid al-Fitr holidays will the negative effect will be clear," he added.
Shareholder and prominent Palestinian businessman Munib al-Masri played down the departure of Shuman, while noting his wife, daughter and the secretary of the board of directors had also resigned.
Shoman only retained around 2 percent stake in the bank, and his departure will actually boost the company's fortunes, al-Masri said.
Saudi-broadcaster Al Arabiya published a copy of Shoman's resignation letter where he described his position as untenable, citing differences with the bank's CEO and other board members.