Palestine Monetary Authority Conducts a Workshop for Banks on the Implementation of Basel II
The Palestine Monetary Authority (PMA) conducted a workshop at the Best Eastern Hotel in Ramallah on the implementation of the Basel II recommendations in Palestinian banks. Participants included 75 employees from the risk and compliance departments of all banks.
Mr. Mustafa Abu Salah, head of the Local Banks Supervisory Department, opened the workshop by explaining that the objective was to provide general background information to supplement previous discussions with banks on the implementation of the Basel II requirements project, in addition to developments in the Palestinian banking sector. He gave a general overview of the next step of the project, which is the conducting of a quantitative impact study (QIS) for the implementation process. Mr. Abu Salah confirmed that the final instructions for the implementation of the Basel II requirements will be based on these working papers. All banks need to enhance their efforts and ensure the availability of the resources and policies needed for the implementation process.
Special expert Mr. Vaidon Oglo, who was appointed by the World Bank to assist the PMA in the implementation of the Basel II requirements project, provided a detailed explanation about the working papers related to credit risk, market risk, operational risks, and the second pillar of Basel II requirements. He also provided a simplified explanation of the QIS.
To conclude, Mr. Abu Salah affirmed the importance of the implementation of the Basel II requirements to develop and enhance good governance and risk management in all banks. The project will enhance solvency and the ability of the banking sector to address risks. It will also help to safeguard the safety and stability of the banking system and protect funds. All questions by participants were answered. It was confirmed that the implementation process relies on three main foundations: simplicity, gradual implementation, and communication for optimal implementation of the Basel II requirements, taking into account the unique nature of the Palestinian context.
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