| 520 |
|
|
|b Basel II Accord has been described with the biggest concentration on the concept of the Risk Management as a whole, By so doing it has exceeded what has been put down in Basel I which sufficed with the decision of the lowest Banking Capital Adequacy . Thus , The new Basel Accord consists of three 'pillars': capital requirements, supervision, and market discipline. In the sophisticated version of the capital requirements pillar, capital requirements are based on banks' own measures of risks. The new framework is based on the premise that discipline by the markets and by supervisors is beneficial. This Accord has put into consideration many of the dimensions for the sake of the realization the best thing for its goals, that is from the point of view of taking cautious stand towards defining the scope of application, its effect in treating the mutual Equity risks , while the insuring credit worthiness has been joined according to six risk-weighted which meet with all its numerous kinds without being sufficient with one or two kinds of them. The judgments of the Accord have come to firmly fix the subjugation of economic , and financial Risk assessment for unified international dimensions which facilitate the judgment on the financial safety of the bank and comparing it with another , also the banking system as a whole and comparing it to others banking systems . They didn't suffice themselves with this, but they had an amount of the gradual flexibility in the application, which helps many of the countries to go forward towards the applicability even if this shall be in future time, Basel II has confirmed the idea of judgment to the market when assessing the risk. Also, the new Accord has confirmed the concept of the economic capital which banks maintain it for facing the risks based upon their various processes. It is doubtless that accepting this accord represents the most important challenges which encounter the Arab Banking Systems, as the accord has come with many of the requirements , details and branching , which necessitates not only to cover its dimensions but also changing the environment of Arab Banking Culture , it is the case which must be followed by reorganizing of Arab Banking systems , whether it was according to the material , technological or human resources level.
|
