A New Environment
The influx of regulatory initiatives in the UAE is having the
dual effect of bringing the jurisdiction into alignment with
international regulatory standards, while making many Financial
Institutions ("FIs") reconsider their cost of capital /
cost of funding, and reposition themselves in relation to risk,
governance, compliance and associated costs.
Included in the multiple regulatory changes that have been
implemented are the Basel III requirements, where the international
framework has been adapted (as is the case in various
jurisdictions), based on the UAE regulatory priorities and
financial stability considerations.
The Basel III framework, came as a reaction to the 2008
Financial Crisis; as such, it introduced many new
"constraints" and various layers of additional analytical
and reporting requirements. Amongst other things, the framework
requires key areas of regulatory adoption, as listed below:
