Sources: private banks focus on strengthening governance
18-12-2011 (Voice of Iraq) - Baghdad
Put banks on a broad program of activities in 2012, and highlighted what is in the promotion of interest in the subject of corporate governance of banks and financial institutions for his role in the promotion of free market economy and the prevention of corruption and mismanagement, especially that of governance are necessary and inherent to financial activity in the world. The newspaper al-Hayat for the managing director's (National Bank of the Islamic) Sadeq Rashid Al-Shammari said: that the interest of banking and financial sector governance stems from the growing role in the economic arena, and that would use the mechanisms of governance, optimization, adjust the paths of banks and other financial institutions and direct, so as to ensure them to achieve their goals in a framework of legislation that promote sound banking opportunities for implementing programs. He pointed out that the current Iraqi banks are governed by the need for methods and formulas to avoid credit risks properly and commitment to the Basel standards, which focused attention on the issue of governance and implementation mechanisms, considering that the availability of a sound banking system is healthy and essential for the health of the economy.
He Shammari to read the reality of Iraqi banks show that the obstacles to its work lies in the lack of commitment to rules of governance and its mechanisms as evidence of the work of financial reform and institutional spared from any form of corruption, prompting the Association of Banks to require industry to take corrective measures especially the presence of specialized units to take on responsibility for follow-up mechanisms of governance and implementation, with emphasis on the study of the culture of governance and their impact on banking performance and address the risks in the credit decision.
Furthermore, dictated by banking sources to respond departments of banks and financial institutions to the requirements of the broad program developed by the Association, under commitment control governance after the observed weakness of the knowledge and its mechanisms of many banks, as well as the absence of the strategic dimension of management when you go to avoid the risk banking. Noted these sources twice the size of participating in many activities organized by the Association of performance-related banking, and how to avoid exposure, making it the focus over the next year, the need to keep up with calls to the importance of governance in the banking and financial sectors, and their role in attracting sources of funding for local and foreign promote growth and supports its presence in the market competition and investment, and increasing concern for the disclosure and transparency and fighting corruption.
In addition, the Ministry of Finance kept the instructions which had been circulated to the ministries and government departments not to open accounts in private banks.
Showed a document obtained by the independent press (Iba) a copy, the Economic Commission of the Council of Ministers issued a directive to the Ministry of Finance of 04.06.2009 on the support of private banks, but the Finance Ministry did not take any action on it yet. The document, which is an official letter addressed by the Office of the President of the Economic Commission then Deputy Prime Minister Barham Saleh to the Office of the Minister of Finance requested that the Commission allow the ministries to open accounts with private banks for the purpose of opening credits and increase the amount of two million to $ 5 million.
Also called the Economic Commission urged companies to self-finance for the deposit and the opening of bank accounts in private banks. On the other hand and directed the Commission and the Ministry of Finance to establish the Bank contributes to the mixed government and private banks and branches of foreign banks with a capital appropriately, and supports the foundations of modern banking.
Even after a long time on these directives, but the Ministry of Finance is still far from their application, in a time when private banks from dealing with the official, despite the advice of experts should be shown by their support. this side said an adviser to Prime Minister for Economic Affairs Abdullah Al-Hussein Anbuge in a press statement that the phase transition towards a market economy requires a private sector a more active role and be directed to the economy of the country, pointing out that such approach would require a banking system capable of mobilizing financial savings will be huge waiting for Iraq , in particular, and that a future on the stage of economic growth and broad, as well as follow-up of the various economic projects, and stand at the economic feasibility of them earned.
The Anbuge in his statement that the process of economic reform requires that the head of government banks towards lending to private banks, to expand its work and services that must be provided to the local economy.
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