BMGT450

Assignment
Dr. Kamal Tamim

Aram Al-Shibany 61820050

Basel Committee on Banking Supervision:

The Basel Committee on Banking Supervision (BCBS) is the primary global standard setter

for the prudential regulation of banks and provides a forum for regular cooperation on

banking supervisory matters. Its 45 members comprise central banks and bank supervisors

from 28 jurisdictions.

Objectives:

Globalization in banking and financial markets was not accompanied by global regulation.

National regulators remained the most important actors in banking practices. They had a

capacity problem and an information problem. Therefore, the purpose of the BCBS is to

encourage convergence toward common approaches and standards. The Committee is not a

classical multilateral organization, in part because it has no founding treaty. BCBS does not

issue binding regulation; rather, it functions as an informal forum in which policy solutions

and standards are developed.

The Basel Committee formulates broad supervisory standards and guidelines and

recommends statements of best practice in banking supervision (see bank regulation or

"Basel III Accord", for example) in the expectation that member authorities and other nations'

authorities will take steps to implement them through their own national systems.

How they help other banks?

Through the following activities:

 Exchanging information on developments in the banking sector and financial markets,

to help identify current or emerging risks for the global financial system.

 Sharing supervisory issues, approaches and techniques to promote common

understanding and to improve cross-border cooperation.

  Establishing and promoting global standards for the regulation and supervision of

banks as well as guidelines and sound practices.

 Addressing regulatory and supervisory gaps that pose risks to financial stability.

 Monitoring the implementation of BCBS standards in member countries and beyond

with the purpose of ensuring their timely, consistent and effective implementation and

contributing to a "level playing field" among internationally active banks.

 Consulting with central banks and bank supervisory authorities which are not

members of the BCBS to benefit from their input into the BCBS policy formulation

process and to promote the implementation of BCBS standards, guidelines and sound

practices beyond BCBS member countries.

 Coordinating and cooperating with other financial sector standard setters and

international bodies, particularly those involved in promoting financial stability.

Comments:

The Basel Committee on Banking Supervision (BCBS) is helping the Yemeni bankers with

the services they provide like information about developing the banking sectors, also, by

applying international law of banks and supervising and helping the banks with gaps and

risks.

In addition, they aid in monitoring and supervising that the employees of the banks are doing

their right tasks and perform them in the right way.

International association of deposit insurers:

The International Association of Deposit Insurers (IADI) was formed in May 2002 to

enhance the effectiveness of deposit insurance systems by promoting guidance and

international cooperation. Members of IADI conduct research and produce guidance for the

benefit of those jurisdictions seeking to establish or improve a deposit insurance system.

Members also share their knowledge and expertise through participation in international

conferences and other forums. 

Objectives:

To contribute to the stability of financial systems by promoting international cooperation in

the field of deposit insurance and providing guidance for establishing new, and enhancing

existing, deposit insurance systems, and to encourage wide international contact among

deposit insurers and other interested parties.

How they help banks?

Through the following:

 Develops principles, standards and guidance to enhances the effectiveness of deposit

insurance systems - taking into account different circumstances, settings and

structures.

 Encourages consideration and voluntary application of its principles, standards and

guidelines.

 Develops methodologies for the assessment of compliance with its principles,

standards, and guidelines, and facilitates assessment processes.

 Enhances the understanding of common interests and issues related to deposit

insurance.
  Facilitate the sharing and exchange of expertise and information on deposit insurance

issues through training, development and educational programs and provides advice

on the establishment or enhancement of effective deposit insurance systems.

 Undertakes research on issues relating to deposit insurance.

 Co-operates with other international organisations, particularly those involved in

issues related to financial markets and promotion of financial growth, stability and

integrity.

 Creates awareness among supervisors and regulators of financial institutions

concerning the key role of deposit insurance systems in maintaining financial

stability.

Comments:

The system will be a great advantage in the Yemeni banking system because it will reduce

the physical risks to the people and the banks along with the technical assistant that will be

provided to the banks in Yemen.

Yemen Banks Association:

It is a professional association that represents the collective voice of Yemeni banks and their

unified position regarding issues and developments related to the activity of the banking

sector and its relations with government agencies concerned with regulating banking activity,

and with the public of customers.

Objectives:

 Collective exchange of opinion between banks operating in the Republic and between

these banks and the Bank and all other governmental and non-governmental agencies

concerned with banking, financial, economic or commercial activities.

 Exchanging banking and economic information with banking institutions in order to

achieve mutual benefit, and for the association to be aware of new commercial and

financial developments in the world. In implementation of this purpose, it may meet

with the relevant institutions and bodies inside and outside the Republic, and it may

hold meetings with the International Monetary Fund and the World Bank in

coordination with the Bank regarding external contacts.

 Working to spread banking awareness and laying down legal rules to establish sound

banking norms.

 Arabizing banking terminology in foreign languages and working to develop an

accurate guide for the use and unified use of these terms in the Republic, in

coordination with the relevant authorities.

 Studying the problems of credit, money, exchange rates, foreign trade, and technical

and administrative banking problems, and presenting recommendations in this regard

to the bank.
 Work to resolve differences and disputes that may arise between member banks

without prejudice to the legal provisions in force in this regard.

 Cooperate with the government in establishing a financial market whenever the

conditions are appropriate for the establishment of this system, seek help from its

technical opinion in the privatization process, and highlight the role of banks in this

field.

 Contribute to the establishment of an arbitration and conciliation centre to resolve

differences and disputes between member banks or between these banks and their

clients. Third parties may benefit from the services of this centre after paying the

prescribed fee.

 Taking care of the interests of the association and members, documenting the

foundations of cooperation between them, and coordinating their activities to achieve

their common interests.

 Examining common issues related to the various aspects of the members' activities

and finding appropriate solutions to the problems facing them.

 Developing and modernizing methods of performing banking services, and

exchanging information and experiences in everything that would raise the level of

banking work and serve the common goals of members.

 Work to establish cooperation relations between the association and Arab, regional

and international banking bodies and associations through official channels and

relevant authorities.

 Providing advisory services to members in their field of work.

 Work to create an organizational relationship with the Institute of Banks, participate

in its management, contribute to the budget, and benefit from the training,

qualification and banking awareness services provided.

  Any banking, financial, commercial or economic work that achieves the common

interests of the member banks and helps to enhance cooperation with the bank to

implement the plans and programs of the monetary and banking policy that it makes

and to express a point of view regarding them as long as this achieves the public

interest of the state or achieves the interest of the member banks within the framework

of the laws in force. in the republic.

How do they help banks?

Defending the interests of the Yemeni banking sector, and coordinating between Yemeni

banks in matters of common interest such as professional standards, procedures, and

technology used in the sector, and setting up voluntary arbitration arrangements between

banks or between banks and their clients in any disputes related to work relations or

procedures for practicing the profession. It also works to facilitate agreement on proposals

aimed at developing legislation and procedures related to the banking sector activity in

Yemen.

Comments:

It will help the Yemeni banks by providing them with the links among all the banks locally

and internationally. Also, they provide training and the awareness they needed about the

banking operations.