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QNB shares experiences of compliance with Basel II Accord |
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DOHA: Qatar National Bank (QNB) yesterday shared its experiences relating to the Bank's compliance with the Basel II regulatory recommendations at a symposium held at the Intercontinental Hotel, in Doha.
Ahmed Abdei Sheikh, executive manager, Risk Management, QNB shared the Bank's experience in a presentation entitled "QNB Basel II Implementation Experience". QNB was a prime sponsor of the two-day symposium which was arranged under the auspices of Qatar Central Bank. "QNB has invested significantly in educating its staff about the Basel II Agreement ensuring that they become familiar with the issues relating to the implementation of this agreement. QNB staff had participated in a broad spectrum of seminars and workshops that focused on best practices and techniques," said Abdei Sheikh.
"Having started early in ensuring that our processes are aligned with the Basel requirements, we are pleased to share our learning, as well as learn through the experiences of other local and regional banks. This symposium serves as an excellent platform for such important exchanges," he pointed out.
The primary objective of the Basel Accord is to protect depositors and enhance the financial stability of the banking system around the world. In essence, the Accord works by requiring those banks which accept riskier assets to set aside higher levels of capital. The Basel I Accord initially covered credit risk but was amended in 1996 to include market risks. The new Basel II Accord differs from Basel I in that it includes operational risks as well as credit and market risks. Basel II also encourages banks to improve their risk management capabilities. Under the Basel II, work is required by all banks to identify, measure and manage these types of risk which might adversely affect their operations and profitability. Full compliance is required by all banks in Qatar by the end of 2006.
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