New bank seeks to revolutionise Somalia's financial system

Hundreds of Somalis have opened accounts and applied for loans since the launch of the first branch of the International Bank of Somalia (IBS) in Mogadishu in October, according to chief executive officer Hassan Yusuf. He told Sabahi newspaper the bank is a huge step forward for Somalia as it is beginning to bring the country in line with the international banking system and global transfer standards.

The country's economy has for many years relied on remittances from migrants.The UN estimates that 40 per cent of the Somali population relies on such remittances.

However, many banks across the globe decided to close the bank accounts of Somali money transfer companies over concerns that the money transmission sector was at risk of being used for money laundering and terrorist funding, and did not meet new regulatory requirements.

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