Wednesday 25, July 2018 by William Mullally

UAE Banks Federation hold workshop ahead of Basel III implementation

Presented in association with Moody’s Analytics, the six-hour risk management workshop focused on upcoming changes to the regulatory framework, as outlined in the Basel III accord.

The UAE Banks Federation (UBF) hosted a six-hour workshop examining the key issues around the upcoming implementation of the Basel III Accord.  The event was held in Abu Dhabi, and the sessions have been arranged by the UBF Risk Management Committee (UBF-RMC) in association with Moody's Analytics, with the aim to help the banks prepare for the roll-out of the new regulatory framework, which builds on the Basel II Accord to strengthen the regulation, supervision and risk management of the banking sector, according to a statement from UBF.

The workshop was designed to support Heads of Risk Management (CRO) and Heads of Finance (CFO) as they prepare for the upcoming transition, according to UBF, in line with regulations set by the Central Bank of the UAE. Representatives from Moody’s Analytics including Anand Radhakrishnan, Director – Solutions Specialists; Adam Balogh, Director - Product Management; and Nicolas Kunghehian, Director - Business Development (EMEA) delivered a series of presentations on topics surrounding the new regulations, with sessions focusing on future developments in IFRS 9, interest rate risks, and Standardized Approach to Counterparty Credit Risk (CCR) and Credit Valuation Adjustment (CVA) risk charges.

 “In line with UBF mandate and commitment to keep member banks well informed and updated on latest regulations, Today’s workshop provides all participants a good opportunity to equip themselves with the knowledge required to ensure a smooth transition during the implementation of the new regulatory framework. We are pleased to welcome some of the top experts in their field to share the latest updates and participate in such an engaging and informative dialogue," Jamal Saleh, Deputy Director General, UBF, said.

 “The UAE boasts a strong economy and banks are on course to comfortably meet the requirements of Basel III, thanks to their high Tier 1 capital levels. Today’s event highlights UBF’s ongoing commitment to the advancement of the UAE’s banking sector and will help to build a solid foundation for long-term stability and further success,' Karim Mahmoud, Chairman of Risk Management Committee, UBF, and Head of Wholesale Risk Management, Mashreq Bank, said.

 Basel III is a set of international banking regulations developed by the Bank for International Settlements in order to promote stability throughout the international financial system. Initiated in response to the financial crisis of 2008-09, the measures outlined in Basel III are designed to minimize the potential for banks to damage the economy by taking on excess risk. This objective will be achieved by ensuring proper leverage ratios are maintained through the introduction of more robust minimum capital and liquidity requirements.

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