Credit risk and its impact on banks

Admin Sat Jan 23, 2016 8:03 am

1/23/2016 0:00

ABU DHABI AMF site
Concluded in the city of Abu Dhabi, United Arab Emirates businessman regular meeting of the consultative group of the Basel Committee which is home to the Arab Monetary Fund over the past week, where he participated in the meeting a number of senior officials from the banking supervision departments in a number of global central banks.

And participated in the effectiveness of the representatives of the committees of banking supervision of regional groups, by discussing a number of important issues in the framework of the Basel Committee's program for 2016, especially the proposed standard method for measuring credit risk potential for banks and their effects, and the issues of monitoring the implementation of standards amendments (Basel 3), to Besides discussion papers and standards that have been set up in the framework of the Basel Committee, including the regulatory treatment of sovereign exposures.

It should be noted that, with respect to the proposed standard curriculum modifications, the Commission has reviewed the modified second issued in March of last year the principle of relying on external ratings so that the re-count on with a proposal to have a minimum percentage of risk with the bank considered responsible for the increased risk ratios if What gripped the credit relationship any negative impact although not reflected in the credit rating after.

The committee also currently studying the impact of the adoption of this new standard on a sample of global banks in an attempt to more accurately forecast the effects of the application of the proposed amendments to understand.

In turn, expressed the Director General Chairman of the Arab Monetary Fund Dr. Abdulrahman bin Abdullah Al-Hamidi welcomed the Fund to host regular meeting of the group of the Consultative Committee of Basel, which reflects the role of the Fund in terms of coordination and cooperation between the Arab Committee on Banking Supervision and the Basel Committee, and enhances the role of the Arab Committee as a a link between the supervisory and regulatory authorities in the Arab countries and international financial institutions concerned. As he noted on the topics on the agenda and its importance.

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