UAE Central Bank Launches New Credit Risk Model
The UAE Central Bank has come up with a new risk model that it claims will change the entire process of risk mapping for the country's banking industry, reported the Khaleej Times on Tuesday, quoting officials.
Mark Markani, banking supervisor and head of the risk review working group at the bank, told the daily that the new risk model was “a dynamic methodology that enables a form of banking supervision, which matches and responds to the challenges emanating from the fast evolving financial services industry.”
The implementation of this model, called the End-to-End Credit Risk Management Process, will also bring the UAE banking industry on par with the best risk managed systems in the world, he said.
According to the bank, the new model reviews management of credit risk covering end-to-end processes and quality drivers across the banking business, identifying high-level risk in a timely and efficient manner. This is then analyzed for both consequences and solutions.
Describing the need for the new model, the official said that with the changing delivery channels and transactional procedures in the banking industry, it had become paramount to have the risk in the banking industry managed as per new demands that require risk to be managed from all angles – Albawaba.com
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