The Kuwaiti firm of PwC, the leading global professional services organisation, held a Risk Talk session 'From Basel II to Basel III' for senior management professionals from the Kuwaiti banking sector.
Camille Haddad, who leads PwC's advisory practice in Kuwait, introduced Monika Mars, a director from the PwC firm in Switzerland who led the session. Monika has a depth of experience in advising banks and regulators across Europe, Latin America, Asia and Middle East; including the UK FSA and the Dutch National Bank, on the implementation of the Basel II framework since 2001.
Following an announcement made on 12 September by the Basel Committee whereby capital and liquidity required by banks would significantly increase, this has attracted widespread interest around the world and maps an agreed strategy for the sector for the next ten years.
At the session, Monika talked about the proposed changes and enhancements to Basel II since July 2009, implications of Basel III changes for banks, the new minimum capital ratios, and shared her insights into how international banks are dealing with these proposed changes. She also discussed at length, the consultation paper regarding liquidity risk management whereby the committee is proposing the introduction of measures such as a 30 day liquidity coverage ratio and a longer-term structural liquidity ratio to address liquidity mismatches and promote the use of stable funding sources. Monika concluded on the note that since the Basel III proposals are being released in a piece-meal manner, it does not allow a comprehensive assessment and thus the precise impact of these new proposals remains uncertain.
Fouad Douglas, PwC Country Senior Partner Kuwait said: "Basel III has been an evolving issue since 2009. Until the final agreement is reached by the Basel committee, it is up to the individual jurisdictions to oversee and follow up on the implementation. PwC Kuwait has been at the forefront in this arena and will continue to follow up and provide updates to all Kuwaiti banks with regards to the Basel III developments."
PwC has one of the largest professional service practices across the Middle East region, with 135 partners and 2,500 people.