A narrowing gulf

Many Middle Eastern countries are keen to implement Basel II and larger banks have stepped up efforts to develop advanced risk frameworks. But smaller banks are being hindered by a shortage of resources and experienced staff. Victoria Pennington reports

Big cars, designer clothes and glass skyscrapers are some of the images the Persian Gulf brings to mind. Maintaining a prestigious image is paramount in the region - for local banks as for everyone else. They want to enhance their international image, and adopting Basel II, especially the advanced approach to credit and operational risk, is one way to do that.

But there is also a growing need for these fast-expanding banks to establish a solid risk culture, as local markets flourish on the wave