Tuesday, September 14, 2010
Implementing Basel III in Kuwait is Central Bank decision - experts ...
Implementing Basel III in Kuwait is Central Bank decision - experts
KUWAIT, Sept 14 (KUNA) -- Implementing Basel III, a new banking standard recently agreed by global regulators to triple the size of capital reserves banks hold against losses, is a decision the Central Bank of Kuwait should be left to ponder over, two economic experts said.
Speaking to KUNA on Tuesday, the two experts stressed the need to contemplate the decision in light of the local banking sector, particularly when taking into account that banks in the Gulf region were less affected by the economic downturn than their counterparts in Europe and the US.
The package, known as Basel III, sets a new key capital ratio of 4.5 percent, more than double the current two percent level, plus a new buffer of a further 2.5 percent.
The ratios are to be achieved over the period from January 2013 to January 2019.
Board Chairman of Mina Real Estate, Fouad Al-Omar noted that Basel III, boosts global capitalist standards and at the same time, supports financial stability and growth, adding that the package is not compulsory locally.
He mentioned that the global economic downturn obliged the global banking system to implement more strict standards that steer banks clear away from risk.
He viewed that Kuwaiti banks were able to implement these standards if called to do so, especially after being successful in the implementation of the earlier Basel II and Basel consecutively.
For his part, Chairman of Kuwait Accountants and Auditors Association Mohammad Al-Hajeri said that implementing the package would withdraw liquidity from markets, both locally and internationally, affected by weak liquidity, thus causing positive effects on economic revival.
He also said that the Central Bank of Kuwait is well-informed on the current status of the banking sector, after demonstrating this when dealing with the effects of the economic downturn in spite of pressure in such a short period.
(end) fnk.sd KUNA 141942 Sep 10NNNN
Implementing Basel III in Kuwait is Central Bank decision - experts ...
Implementing Basel III in Kuwait is Central Bank decision - experts
KUWAIT, Sept 14 (KUNA) -- Implementing Basel III, a new banking standard recently agreed by global regulators to triple the size of capital reserves banks hold against losses, is a decision the Central Bank of Kuwait should be left to ponder over, two economic experts said.
Speaking to KUNA on Tuesday, the two experts stressed the need to contemplate the decision in light of the local banking sector, particularly when taking into account that banks in the Gulf region were less affected by the economic downturn than their counterparts in Europe and the US.
The package, known as Basel III, sets a new key capital ratio of 4.5 percent, more than double the current two percent level, plus a new buffer of a further 2.5 percent.
The ratios are to be achieved over the period from January 2013 to January 2019.
Board Chairman of Mina Real Estate, Fouad Al-Omar noted that Basel III, boosts global capitalist standards and at the same time, supports financial stability and growth, adding that the package is not compulsory locally.
He mentioned that the global economic downturn obliged the global banking system to implement more strict standards that steer banks clear away from risk.
He viewed that Kuwaiti banks were able to implement these standards if called to do so, especially after being successful in the implementation of the earlier Basel II and Basel consecutively.
For his part, Chairman of Kuwait Accountants and Auditors Association Mohammad Al-Hajeri said that implementing the package would withdraw liquidity from markets, both locally and internationally, affected by weak liquidity, thus causing positive effects on economic revival.
He also said that the Central Bank of Kuwait is well-informed on the current status of the banking sector, after demonstrating this when dealing with the effects of the economic downturn in spite of pressure in such a short period.
(end) fnk.sd KUNA 141942 Sep 10NNNN