Improving Banking Supervisory Mechanisms
In the OIC Member Countries
27
standards imposed by BASEL III. The observation is still valid, where banks in the member
countries have capital adequacy ratios, which, on average, satisfy the regulatory requirements.
Some members have CAR's lesser than regulatory minimum of 8%. Some OIC countries may
not attain the minimum of 8% CAR in 2009, since BASEL III eventually will require a higher
CAR than 8%, some OIC members should be ready for further capital injections.
Figure 17: Bank Capital-Asset Ratio
Source: Bankscope
As a conclusion, even though the capital level in OIC members seems to be sufficient for the
regulatory environment for BASEL II, in order to assess for whether OIC countries are ready
for BASEL III by 2018, further impact studies are required. In this regard, even a coordinated
Quantitative Impact Study (QIS) among OIC countries can be made.
Figure 18: Bank Regulatory Capital
Source: Bankscope
0
2
4
6
8
10
12
14
16
18
20
Turkey Malaysia Saudi Arabia UAE Pakistan Indonesia Nigeria Kazakhistan
Bank Capital/Assets (%)
2008
2009
2010
2011
2012
2013
2014
0
5
10
15
20
25
Bank Regulatory Capital to RWA
2008
2009
2010
2011
2012
2013