THE UNION OF ARAB BANKS CHALLENGES CORONA AND HOLDS THE RISK MANAGEMENT FORUM IN HURGHADA

by **claud39** Mon Mar 09, 2020 9:13 am

9/03/2020

[rtl]Participants in the conference recommended the need for a clear methodology for banks to manage digital risks, while developing the capabilities of employees in the banks 'information security departments in managing those risks, and the banks' strategies and policies include a section on managing cyber risks. In addition to fostering a culture of electronic governance, each financial institution will develop its own cybersecurity strategy in accordance with risk management practices.[/rtl]

[rtl]The Forum urged the importance of developing appropriate legislations to regulate the issuance of central banks for digital currencies, and to enhance international coordination in this regard, and to work together to develop appropriate qualitative indicators to measure the risks of money laundering and terrorist financing and the commitment of banks to the standards of governance, and to set a minimum for the bottom crystal on assets weighted by risk weights For banks that use the internal evaluation method to limit the banks ’benefit from achieving savings in capital requirements compared to using the standard method.[/rtl]

[rtl]The Forum called for working on preparing models for measuring and managing the rate of return risk for positions held for non-trading purposes, and for these models to be based on accurate, documented data and subject to tests to verify the accuracy and integrity of the measurement process. They also called for working on setting an effective general framework for operational risks that includes identifying, following-up and monitoring operational risks and mitigating them, especially those related to all banking products and activities and operations, whether current or new, as part of the comprehensive approach to risk management in banks, and to ensure documenting all procedures and policies related to operational risks and rules Regulatory related to IT system management.[/rtl]

[rtl]The Federation called for the development of an emergency plan to address the possibility of the bank experiencing difficult conditions or severe disturbances that may lead to the cessation of activity, and to intensify efforts to develop indicators to lead to the risks of issuance of sovereign debt issues.[/rtl]

[rtl]Gamal Negm, Deputy Governor of the Central Bank of Egypt, confirmed that the central bank offered plastic money after the completion of the infrastructure for the printing process, indicating that the central bank will start with a 10-pound category that comes in the form of plastic money from a “polymer” substance, during the coming period with the start of the printing press The new Central Bank of Egypt in the new administrative capital.[/rtl]

[rtl]On the sidelines of his participation in the Forum of Chiefs of Risk Departments in Arab Banks in Hurghada, he said that plastic money is distinguished by being 3 times the life expectancy of its paper counterparts or banknotes.[/rtl]

[rtl]Najm said: There is a large international bank that asked to open a new branch for it in the Egyptian market, noting that the Egyptian market is attractive for investments.[/rtl]

[rtl]Najm explained, in a speech during the forum that the risk management in banks is no longer limited to managing the traditional risks represented in credit, operating, market, and other risks, explaining that the matter has extended to include the risks associated with information technology due to the increasing development in smart systems and that coincided with the emergence of Digital transformation techniques.[/rtl]

[rtl]Najm said: The banking industry has witnessed many developments and changes as a result of accelerated technological progress during the past two decades, as the assets were digitized and circulated electronically, and the scope of this trading expanded through cloud computing, and many new financial products offered by banks emerged, which put the banking industry in front of Many services require the concerted efforts of all parties concerned to maximize the returns from these developments and reduce or reduce the risks resulting from it.[/rtl]

[rtl]He explained that the heads of risk departments are responsible for understanding, measuring and analyzing the risks facing each bank separately, as the laws, regulatory instructions and periodic letters issued by the watchman are the minimum required for the banking supervision sectors, especially the risk sector.[/rtl]

[rtl]He pointed out the importance of risk management, especially associated with financial technology resulting from the digital transformation, and the increasing challenges related to managing cyber security risks, and the application of Basel requirements, stressing the importance of studying the utilization of digital currencies for central banks, as a tool developed from monetary policy tools, and examining the extent of the contribution of digital currencies to central banks. In enhancing financial stability, and creating a new main job in banks under the name "Director or Officer of Risk and Digital Security" that follows the risk sector and specializes in striking a balance between the need to secure bank protection, and the need to conduct business, as well as linkage Between digital business units and legal departments directly in addition to the necessity of measuring the size of the risks related to issuance of sovereign debts using the ratio of those issues to the assets portfolio or its ratio to the first and second tranche of the capital.[/rtl]

[rtl]The Secretary-General of the Federation of Arab Banks, Wissam Fattouh, pointed out the importance of Arab banks dealing with these challenges facing the region in unconventional ways and means, calling for not being satisfied with the procedures for adapting to or hedging these risks. Rather, they should be proactive, creative and innovative in facing these risks, and not adopt policies Avoid risk (de-risking), but rather manage risk in the optimal way, and deepen their cooperation with each other, all for the sake of survival, growth and continued financing of Arab economies. This came in the forum “Heads of Risk Departments in Arab Banks” in Hurghada during the period from 6 to 8 March 2020.[/rtl]

[rtl]He added that there are multiple risks facing the Arab region, including: geo-political conflicts, commercial disputes, epidemics, and those related to financial crimes, money laundering and terrorist financing, and the risks related to banking work, which are complicated by the day-to-day - those risks that threaten economies and markets Finance and banking sectors around the world in an unprecedented way.[/rtl]

[rtl]He said «the world today lives in a cycle of successive crises that cause great risks affecting man, economy and stability. He explained that these risks, which began to threaten deep crises, as it became clear that the escalation of geo-political tensions, especially between the United States of America and Iran, would weaken commercial investment and disrupt global oil supplies, and that the turmoil intensified in many countries, especially in our Arab region It weakens economic activity, complicates reform efforts, and slows growth below the expected level, in addition to exacerbating the slowdown in emerging market economies that have become weak due to pressure. Customs barriers between the United States and its trading partners, especially China, have affected the nature of business and exacerbated the ongoing structural slowdown in many economies over the past year.[/rtl]

[rtl]The Secretary-General said: The continuation of the global and regional economy in retreat in the light of the consequences of the successive crises, whether economic or geopolitical, in addition to trade wars from all sides, and what the world is witnessing today is represented by the storm of the Corona virus that started threatening the global economy, and the lines of trade, tourism and services And other global economic sectors, and recently touched China, Europe and major economic countries, indicating that Corona obstructed the global oil movement and reduced the demand for Chinese refineries, and this epidemic led to great harm in the auto industry in China and around the world, where he decided International car manufacturers have seen production cuts in their factories in China due to the outbreak of the virus.[/rtl]

[rtl]https://uabonline.org/%d8%a5%d8%aa%d8%ad%d8%a7%d8%af-%d8%a7%d9%84%d9%85%d8%b5%d8%a7%d8%b1%d9%81-%d8%a7%d9%84%d8%b9%d8%b1%d8%a8%d9%8a%d8%a9-%d9%8a%d8%aa%d8%ad%d8%af%d9%89-%d9%83%d9%88%d8%b1%d9%88%d9%86%d8%a7-%d9%88%d9%8a/
[/rtl]