An interesting article by Gulf News. The UAE’s banking sector is still in a race to be compliant with Basel III for the 2019 deadline and we are talking about Basel IV and its implications. The new rules under Basel IV will significantly impact the way the UAE’s banks maintain capital and liquidity levels.
There will be a significant step up in the new rules, and not a simple iteration from the current Basel III requirements. In the article Gulf News have quoted Steve Punch, the Director of Financial Risk Management at KPMG, “The difference will be largely quantitative with banks requiring to comply with commonly accepted standards in deciding risk weighting of assets rather than using internal models,”.