Risks of Banking Management [Archives:2005/852/Business & Economy]
Under Patronage of Mr. Ahmed Abdulrahaman Al-Samawi, the governor of Central Bank of Yemen (CBY), the CBY with cooperation of Deloitte Touche Tohmatsu, organized a workshop on Monday 13 June for 65 trainees representing different banks and financial institutions in Yemen on the following topics; Basel 1, Basel II and the risks of bank management.
Mr. Ahmed Al-Samawi, in his speech in opening of the workshop started talking about the importance of holding this workshop in raising awareness among the employees in the banking field about the standards of Basel 1 and Basel II.
Al-Samawi revealed that CBY has achieved good points in implementing the standards of Basel 1 and now the bank will try to apply the standards of Basel II. “Through the last decade the bank has developed in many aspects and qualified its employees in financial matters. The CBY capital has reached from 3 billion to 38 billion.”
The CBY governor added “The aim is not mainly to collect deposits but the basic goal is amending the banking field that could enhance and promote the economy and the development wheel.”
He also stressed on the importance of exchanging experiences with the neighboring countries that have experience more than 50 years in the banking field.
Mr. Hilal Asmar, office Managing Partner at Deloitte, “This workshop is organized based on the invitation by CBY to share the banks and financial institutions in Yemen to understand the general risks they are exposed to, particularly the management hazards to enable these institutions to implement the international standards of Basel II that are complex and need specific time between II006-II008. Today we will discuss all kinds of risks in the financial institutions besides lectures about Basel II in Europe and Middle East.”
Mr. Naim Khiury, advisor, “The workshop sheds light on the risks and its types and how to run and solve these risks as well as Basel II Convention and its effect on capitals in Yemeni banks. This workshop is to the Yemeni banking institution to know these risks and this convention. Basel is part of international convention to connect the Yemeni banking institutions with other banks in the world and it is important to apply this convention. The main goal is to raise awareness about the requirement of Basel II and the risks of banking management as well.”
Mr. Mohammed Humaid, the public relation officer, talked about this workshop in detail “Basel 1 and Basel II are international standards that are issued by the International Marketing Bank in Swiss. These standards are required from the banking devices either in Yemen or international community to achieve certain goals such as raising the capital of the banks. In the past we didn't pay attention to Basel 1 and Basel II and such terms before we apply the financial and monetary amendment program since 1995.
There were some notes about Basel 1 and then they met and add new standards and called Basel II. All the countries are obliged and asked to adapt themselves to apply these standards such as the capital of the banks should not be less than $6 billion through specific period.
Our banks are offered a chance to raise their capitals with 20% but if there is a bank that cannot have such a raise, it can integrate with a bank or two.
As a result these banks can apply their role in enhancing the developmental movement and flourishing the economy in the society”
He concluded “CYB has organized different workshops and training courses in the field of training and rehabilitating the cadre of the bank.”
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[archive-e:852-v:13-y:2005-d:2005-06-20-p:b&e]
