Al-Salami praises the response of government institutions to his parliamentary proposal
Localizing risk departments in banks bridges the easy financing "gap"
Obaid Khalfan Al-Salami: "Preparing qualified citizen inspectors to supervise and control risk administrations, paving the way for their resettlement."
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A member of the Federal National Council confirmed that “the Central Bank’s start of qualifying national cadres to perform the tasks of inspection and supervision of risk departments in banks, will fill a large gap in the banking sector in the country,” represented in the leniency in granting funds to some large companies without guarantees “as a result of the control of certain nationalities over some Important departments in banks, ”considering that“ this measure is a government response to a proposal to be put under the dome of Parliament. ”
In detail, member Obaid Khalfan Al-Ghoul Al-Salami affirmed that the members of the National Council welcomed the decision of the Central Bank to grant 25 of its national employees an accredited certificate that enables them to inspect and supervise the risk departments in banks, and to develop a plan to qualify and prepare 50 other citizen employees to obtain the executive certificate for the existing supervision specialists On risk by the first quarter of next year.
He told «Emirates Today», that «this national step or initiative that the Central Bank launched, finally, has achieved wide echoes and positive reactions among the members of the Council, as it represents a government response to the parliamentary proposals submitted to government institutions under the dome of Parliament during the sessions and discussions of the Council. », Indicating that he raised the problem of resettling decision-making departments in state banks, including risk departments, to the Minister of State for Financial Affairs, Obaid Humaid Al-Tayer, during one of the council’s sessions early this year.
Al-Salami submitted to the Minister a parliamentary proposal specifically aimed at nationalizing the position of responsible and employees of risk departments in banks, provided that the implementation is in accordance with a future five-year plan, or within 10 years, with the sending of distinguished citizens to study masters and doctorates in risk management in distinguished countries in this field.
He added that the proposal included taking immediate and direct measures to diversify the nationalities of managers and officials of risk departments, to make them consist of more than one nationality, and not to keep the risk management official in banks for a long time.
It also included that major corporate and customer borrowers, who borrow billions of dirhams, be under direct control from the Central Bank, because the risks of this segment of customers go beyond the limits of the risk of the borrower's bank to adversely affect the national economy.
Al-Salami stressed that the measure taken by the Central Bank in this regard addresses a major gap in the banking sector in the country represented in the leniency in granting funds to some large companies without guarantees, and this is due to job conglomerates in banks, and some employees ’pursuit of rewards for granting loans to investors, without Considering the waste of bank money and losses it causes in the absence of adequate guarantees from borrowers, considering that “cooperation between the Central Bank and the Irish Banking Institute, recognized by Dublin University College, is the leader in training bankers and bank supervisors, to prepare qualified citizen inspectors to supervise and control Risk departments, paving the way for the replacement of foreign nationalities that control these departments with highly qualified citizens, in addition to setting controls and procedures that all banks operating in the country adhere to, in a way that prevents the granting of funds and loans according to ill-considered personal opinions, and preserves depositors' money and the public interestFor the national economy ».
He explained that "preparing the citizen inspectors will enable them to exercise their responsibilities with the highest levels of skill and professionalism required, to address all types of risks in the banking sector, such as financial risks and market behavior risks, and to face money laundering and combating terrorist financing", stressing the need for the procedure to be a step within the framework of cooperation between the bank. The Central and the Federation of Emirates Banks
To prepare a plan to localize vital jobs in other specialized fields in the banking sector, such as credit, auditing, and compliance, especially in light of the control of certain nationalities over some important departments in banks.
• A plan to qualify and prepare 50 employees to obtain a specialist risk supervision certificate.
• Preparing citizen inspectors to enable them to address financial risks, face money laundering, and combat terrorist financing.
The parliamentary proposal included:
■ Diversify the nationalities of risk managers and administrators.
■ Not to keep the risk management official in the banks for a long time.
• 25 employees, citizens of the Central Bank, who obtained a certificate enabling them to inspect risk departments in banks.
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