|
Asset Management
Kuwait Finance House is reinforcing and stepping up its commitment to
the growth of Islamic banking in Kuwait and rightly increasing its
investment in human resources to strengthen its Asset and Risk
management operations and Compliance function with the formation of a
new Asset Management Unit for the Investment Sector. This is in line
with the best banking practices followed by the global banking
community. The Asset Management Unit is being structured as an
independent department and is entrusted with the responsibility of
managing assets (risk) across the diverse operations and functional
areas of Investment Sector. The new Islamic Banking Law as well as the
development in banking sector all over the world will provide
increased focus on asset management and compliance function. Such
constant monitoring and reporting will also become a mandatory
requirement under Basel accord under discussion. The New Basel Capital
Accord (also known as Basel II) is due to be completed by the middle
of 2004 with implementation required by the end of the year 2006.
KFH has adopted the recommendations of the Central Bank of Kuwait and
Basel committee to measure and manage credit risks using the latest
risk-rating guidelines to be in conformity with the best industry
practices. Employees across the bank have also sharpened their risk
assessment skills through education and training so as to better
understand and evaluate risk and eventually manage & administer its
assets more efficiently based on regulatory guidance and approved
financial parameters. KFH had always remained committed to developing
asset management as a core competence even in the past. By doing so
now with renewed vigor, KFH is only reaffirming its obligation to
proper asset management and also fulfilling its corporate objective of
developing and promoting Islamic Banking in the region in general and
in Kuwait itself in particular so as to be on par with the regional
conventional banks in terms of efficiency and regulatory compliance.
Banks and Financial Institutions all over the world have realized the
growing significance of Compliance function and Asset / Risk
Management and hence are going to great lengths in placing increasing
importance to understand and manage assets. This move will definitely
help the Investment Sector of KFH to better manage its assets and
assess risk, as it will integrate both quantitative and qualitative
information to provide a reliable, consistent risk score for use
across the Sector. Proper asset management will be a key determinant
to future success and it will also facilitate the decision making
process significantly.
|
