Resources for Basel II Capital Accord (Basel II)

Basel II Compliance is a top priority agenda for the UAE Banks

www.arabianbusiness.com

The challenges facing UAE banks while they implement Basel II guidelines were highlighted at the Financial Technologies Middle East (FTME) roundtable conference for Risk Managers entitled ‘Basel II and Beyond'. The biggest challenge faced by the banks is the quantification of operational risk - the risk of failure of systems, processes and people. This challenge is magnified due to the lack of credible, quality and granular data.



Feedback from senior Risk Managers of UAE banks revealed that the majority of the banks may need more than six months to be compliant with the guidelines of the Basel II accord.

Commenting on the progress of the compliance effort, Arshad Khan, Director, FTME, said: "Banks in UAE are very well conversed with the benefits that Basel 2 compliance will bring for them. That's the reason that even though they are facing several challenges still sincere efforts are being put-in to become compliant in the near future. Compliance with these norms helps banks in emerging economies to prepare themselves for global competition and adopt best international practices, particularly in risk management.

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