08 June 2006
Dubai: The UAE's 47 banks are constrained by a shortage of trained manpower and the lack of quality data in implementing the Basel II norms, which are aimed at reducing risk, a central bank official said yesterday.
M.N. Naveed Siddiqi, banking supervisor for Basel II implementation, told a news conference a study had showed there was a shortage of "several hundred risk management type and compliance professionals" in the banking industry.
"One of the constraints that we have is skilled resources. One of the other challenges that we have is adequate data, because a lot of Basel II requirements is modelling," Siddiqi said on the sidelines of the conference to launch a new master's programme in banking and finance.
"And that modelling depends on adequate data, specifically, default data. In the UAE, we have had a very good economy for the past so many years, so there is very little data that is available. Other constraints are IT systems and the technical ability to do the modelling".
Basel II is an international programme to manage and reduce risk among banks, which includes incorporating best practices in corporate governance and audit.
Siddiqi said the UAE central bank had just completed a detailed study on banks' preparedness to implement the Basel II norms and has formulated an implementation plan using the study.
Its key features including upscaling information technology systems and the sharing of data among UAE banks and with others in GCC countries.
"These are discussions that we are having at the GCC level also with respect to data".
He said the UAE central bank was considering issues relating to the sharing of data without hurting confidentiality and not give one bank an advantage over another.
On Tuesday, the British University of Dubai launched a masters programme in finance and banking aimed at students interested in a high level career in banking, investments and risk management.
The course, developed by the British University in Dubai with London's Cass Business School, Europe's second-ranked business school, is a one-year full time and a two-year part-time programme in management.
By Arif Sharif
Gulf News 2006. All rights reserved.
