Could you provide a brief journey of how you arrived where you are today?
I started my career as a treasury middle office analyst and officer at the National Bank of Pakistan after graduating from the UK in 2004. Within a short period, and at the age of only 31, I have the unique distinction of working as head of risk management in three different sectors of the financial thrift industry — commercial banking, asset management and now Islamic banking.
My early days were rotated within the risk management units, picking up quintessential learning experiences related to financial risk management (FRM) oriented assignments.
What does your role involve?
My primary role is to develop an enterprise-wide FRM identification, measurement and management infrastructure. Yemeni banks are not under the Basel II Accord; hence we are firstly in the process of implementing the capital accord guidelines for TIIB to calculate its minimum capital requirements using internationally applied risk weights as per both IFSB (Islamic Financial Services Board) and Basel II documents.
We are also developing proactive investment risk screening, selection, allocation, performance review and rebalancing methodologies and modus operandi for all trading book transactions. Operational risk controls are being enhanced across all branches and arms of the bank to reduce the risk of internal process breakdown at any time.
What is your greatest achievement to date?
This was when I was attached to Faysal Asset Management, a subsidiary of Faysal Bank, where I developed the risk management unit singlehandedly as well as trained and managed the financial risks of three open-end funds. I further developed more than five quantitative models at the same company to screen, select and back test investment portfolios. All five models were approved by the board of directors and I received the “best manager award” from the senior management.
Which of your products/services deliver the best results?
The bank offers a wide variety of liability type products and services to its clients, benefitting from its large branch coverage throughout Yemen. By and large all liability type facilities offered to clients have resulted in huge growth of both the corporate and retail client base.
Today the bank has the highest number of deposits and depositors in Yemen as a result of product innovation, brand management and the intelligent work of our talented staff.
What are the strengths of your business?
The bank is part of the Hayal Saeed Anam (HSA) Group, the largest and most respected business group in this country. This reputation strengthens our bank’s image and brand equity. Secondly the bank has a wide range of branches all over Yemen, which increases our ability to reach out to customers from the major hubs of business to the remotest part of our country.
Thirdly, the bank benefits from regional synergies and market intelligence related to international investment processes and high net worth banking by having a subsidiary, Tadhamon Capital, in Bahrain. This extends our reach into vibrant international market segments in the areas of private equity, venture capital investments and buyouts, real estate infrastructure development projects, asset management, wealth management and treasury. Last but not the least, our bank values its employees and clients, the bedrock of our continual growth and the support that we have received over the last 10 years.
What are the factors contributing to the success of your company?
Our customers, employees and the management.
What are the obstacles faced in running your business today?
Yemen is a rapidly growing economy, hence this presents both challenges and rewards for the commercial banking industry. I don’t believe that anything in this world is an obstacle unless you perceive it to be at the back of your mind.
Where do you see the Islamic finance industry in, say, the next five years or so?
The Islamic finance industry has shown great resilience over the last two years in the aftermath of the global subprime debt crisis. I believe this has provided greater motivation to investors to explore new vistas in Islamic banking and asset management. The future seems to be promising and Inshallah the growth in the message of equitable and efficient economic and social justice shall spread through Islamic banks all over the over world.
Name one thing you would like to see change in the world of Islamic finance.
Greater imperative should be placed upon inculcating the risk management culture and processes within the larger scheme of things. At the moment globally it seems that conventional banks take up the lead in modeling and practicing the risk management theory. I hope Islamic risk desks will be in a position to theoretically and practically compete with non-Islamic banks in all faculties of risk management in the foreseeable future.