Sana'a, Yemen - In a direct response to the internationally recognized Central Bank of Yemen's (CBY) decision in Aden, the Houthi-controlled branch of the CBY in Sana'a has announced a ban on dealings with 13 local banks. This move marks a significant escalation in the ongoing financial battle between the two factions vying for control of Yemen's banking system.

The Houthi-controlled bank, designated as a terrorist organization by the international community, released a statement on Friday, May 31, outlining the list of banned banks seen by "Barran Press". The list includes prominent institutions: Al-Qutaybi Islamic Microfinance Bank, Al-Busiri Microfinance Bank, Aden Islamic Microfinance Bank, Aden First Islamic Bank, National Bank of Yemen - Aden, Agricultural Cooperative Credit Bank, Aden, Al-Shomool Bank for Islamic Microfinance, Al Salam Capital Bank for Islamic Microfinance, Tamkeen Bank for Microfinance, Alinma Bank for Microfinance, Al-Sharq Bank of Yemen for Islamic Microfinance, Hadhramaut Commercial Bankand Bin Doul Bank for Islamic Microfinance

This action follows the CBY's decision in Aden on Thursday to cease dealings with 6 Yemeni banks, including Tadhamon Bank and Yemen-Kuwait Bank, after they failed to comply with the bank's deadline to relocate their headquarters to Aden. The CBY had issued an ultimatum in early April, demanding all commercial, Islamic, and microfinance banks to move their operations from Sana'a to Aden within 60 days. 

The CBY in Aden justified its decision by citing the need to consolidate financial control in the temporary capital and to ensure compliance with anti-money laundering and terrorism financing regulations.  

The Houthi-controlled bank's retaliatory action further complicates the already fragile financial landscape in Yemen. The ongoing conflict has severely crippled the country's economy, with both sides vying for control of the country's financial resources. The latest developments raise concerns about potential disruptions to banking services and the broader economic implications for the war-torn nation.