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An important gesture to bridge the gap of risk "departments" in banks
Sami Al Riyami
reyami@emaratalyoum.comsamialreyami
May 24, 2021
It is no secret to anyone that there is a gap in the risk management jobs in banks operating in the country, and this gap was a direct cause in many cases that caused hundreds of millions of dirhams to leave the banks due to the escape of their borrowers.
Perhaps this loophole is represented in the absence of national employees from these jobs specifically, and almost one specific national control over supervision and implementation in risk departments. Therefore, the Central Bank did well by launching an initiative and program to prepare qualified citizen inspectors to supervise and control risk departments in banks, instead of controlling them. That nationality is in the final approvals for granting funds, and accordingly it is granted and prevented according to its own vision, which cost the banking sector millions of escaped dirhams in bags of this or that, and examples of that are very many, and no one can forget it!
The new initiative, kindly launched by the Central Bank, and the program it includes provides the necessary information and skills for inspectors to exercise their responsibilities, as it covers financial risks, market behavior risks, countering money laundering and combating terrorist financing.
On the other hand, the program is offered by specialized senior central bank employees, and faculty members of the Irish Banking Institute, providing a unique combination of theoretical knowledge and practical skills, which would contribute to increasing the effectiveness of supervision and a better understanding of the risks that may face Banks and other financial institutions in the UAE.
The new initiative of the Central Bank creates a radical remedy for the excesses and mistakes of risk management in some banks, and paves the way for setting up a collective system, procedures and controls for work that all banks adhere to, in a way that saves depositors' money and stops granting funds that are not considered or are approved based on name or reputation.
25 male and female national employees have obtained an accredited risk inspection certificate through an accredited training program, in cooperation with the Irish Banking Institute, recognized by Dublin University College, the leader in training bankers and bank supervisors since 1898.
The most exciting news for the issuance is what the Central Bank announced that it is currently working, in cooperation with the Federation of Emirates Banks, to prepare a plan to localize vital jobs in specialized areas such as risk, credit, auditing, and compliance, which are the departments most in need of national competencies, who have a sense of Patriot and fear for the public good, and public money.
It is never a secret that the banking sector has suffered greatly from this or that "lobby", which primarily serves the interests of its nationality, and the time has come to hand over our sons, male and female citizens, whose number is close to 10,000 employees, the trust for preserving a banking sector that bears the reputation of the Emirates and reflects its superiority, It serves its aspirations and its approach of making nothing impossible.
Ten thousand citizens and citizens, among them must be able to assume leadership positions in all banks without exception, if the Central Bank deals with its full powers in this thorny and open file without radical solutions for years.
Yes, it is a step that was long overdue, and it cost our largest banking sector in the region a lot, but "it is better to come late than not."
We are all now blindly counting on the new governor, Khaled Muhammad, and we hope to see radical changes that do justice to the hundreds of Emirati competencies that are just waiting to take a chance.
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reyami@emaratalyoum.com
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reyami@emaratalyoum.com