RIYADH, 12 April 2005 — Saudi banks will hold a one-day conference here tomorrow to compare notes on the progress they have made in complying with the new global risk management standards. The conference is being organized by WAMAD Consulting, the leading provider of consulting, technology, outsourcing and training services for the banking sector in the Kingdom.
Moses Kuria, managing consultant at WAMAD, pointed out that the new risk management standards place very stringent compliance requirements on banks for market, credit and operational risk. In addition, they require the regulator banks like the Saudi Arabian Monetary Agency (SAMA) to vary the minimum capital requirements in accordance with each bank’s risk management compliance as well as asset quality. It is expected to have far reaching effects on the banking scene upon implementation.
Kuria said that the new risk management standards are known as BASEL II and are issued by the Basel, Switzerland-based Bank of International Settlements (BIS). Various local and international experts are expected to address the conference. Leading international companies and banks are set to present papers on BASEL II accords. Riyad Bank, WAMAD, IDS Scheer AG from Germany, Elsag Finance Solutions from Italy as well as Riyadh-based AGN Al-Suwailem will present papers.
“It is really encouraging to see these kind of intellectually stimulating events being held in the Kingdom. This is the second banking event organized by WAMAD this year”, said WAMAD officials. The first event was held recently on cards and consumer finance trends. “We expect to have more exciting events in the near future on such important subjects as operational excellence, supply chain management, outsourcing, business process reengineering as well as quality”, said Kuria.