Legal Assessment and Impact of Basel III on Banking Compliance in UAE

By

ACKNOWLEDGEMENT

I am very grateful to God who has given me the grace to start this course and end it successfully. I would like to thank my family especially my dad, who worked really hard and stood by me all the way. God bless my family who gave me full support and encouraged me. I would like to thank my supervisor, for her patience and support. Finally to my friends and all who have made the completion of this project a success, thank you and God bless you.

DECLARATION

I declare that the work in this dissertation was carried out by me. The project is my own original work and has not been submitted elsewhere in fulfilment of the requirements of this or any other award .

SIGNED: ............................................................. DATE: ......................... .

TABLE OF CONTENTS

ACKNOWLEDGEMENTii

DECLARATIONiii

CHAPTER 1: INTRODUCTION1

1.1 Overview of the topic1

1.2 Aim of the Research2

1.3 Objectives of the Research2

CHAPTER 2: LITERATURE REVIEW4

2.1 Background of the concept Basel III4

2.2 Implementation of Basel 1115

2.3 Impact of Basel 111 on Individual Banks7

2.4 Financial System of the country8

2.5 Banking Industry in the UAE9

CHAPTER 3: METHODOLOGY11

3.1 Overview of the Research Methods11

3.2 Limitations of the Research12

BIBLIOGRAPHY14

CHAPTER 1: INTRODUCTION

1.1 Overview of the topic

In LLM study of Corporate Finance Law, I became increasingly interested in Basel Level III in the context of fundamental restructuring approach to risk and regulation of the financial sector that should be consistent practice across banks and jurisdictions. This research will focus on Basel III Implementation in Financial Institutions of United Arab Emirates (UAE) and impact on the compliance of individual banks and financial institutions. I will be describing the Banking industry of the UAE, and the necessary changes to the Banking Law through Basel III in view of effectiveness of its operations and legal compliance across the sector in UAE. There will be the requirement of an assessment to whether the legal aspect of Basel 3 is a kind of regulation that is required for the security of the Financial Industry of UAE and how important is the jurisdictions of the particular country.

There was a G20 Summit that was conducted recently in Seoul which provided the approval of the enforced Basel Committee based on the Banking Supervision (BCBS) contracts and documentation that covered capital and liquidity. The G20 even gave an endorsement of the intermediary phase in order to have a complete implementation of the Basel 3 proposals. Though, the G20 gave a clear objective for the establishment of a perfect operating level for the banks. There is a truth regarding some countries who have taken a different approach towards the important factors like governance and compensation, which even includes taxes and levies. The need for the management of systematic vital financial institutions (SIFIs) direction in addition to accounting and disclosure carries a lot of value. The main task of the Basel III appraisal is making sure that they ensure result of the new rules which are steady in practice carried out in ...