The impact of risks on the application of capital adequacy standards in accordance with Basel decisions in Yemeni commercial banks.

Abstract

This study aimed to identify the level of risk impact on the application of capital adequacy standards in accordance with Basel decisions in Yemeni commercial banks. The study relied on the descriptive analytical method, and the questionnaire was used as a tool for the study.

the study reached many conclusions. The most significant are: the availability of the basic principles of risk Management with the commitment of Yemeni commercial banks to apply the requirements of the Basel committee standards to provide an appropriate environment for measurement capital adequacy and Risk Management. This confirms the presence of a greater motivation for application, risk measurement in Yemeni commercial banks is not effective for not keeping pace with modern measurement methods according to Basel 2,3.

The study suggested: creating a time-bound plan to eliminate the challenges faced by the Yemeni Banking sector to meet the three versions of the Basel standards, amending the instructions of the Central Bank to measure capital adequacy by adding all risks, and establishing a national institution for credit ratings. The need to start implementing the mechanism provided to adjust the capital of Yemeni commercial banks in accordance with the third decisions of Basel.