Banking: Punishment of offenders should be lengthened 8/24
Punishment of offenders should be lengthened
BAGHDAD - the joy of pumice
in order to establish a sound banking system contributes to the construction and investment process, observers and economists urged the necessity of taking into consideration the restructuring of the banking reality and controls him, especially his or her special sector, and to punish the offenders perpetrators of the freezing of the work of some of the affected banks.
Faced many of private banks in previous years guardianship and control by the central bank resolutions, most recently «Economy Bank for Finance and Investment», where he was the central decision in view of the financial Bank of deterioration and its inability to fulfill its financial obligations, what irritated audience of economists and citizens depositors in banks, as found it leads to the weakness of the citizen and investor confidence of the Iraqi banking system in general.
In this regard, the deputy head of the Baghdad Economic Forum spokesman Antoine »Sabah» reasons that lead to the custody of a number of private banks mode, due to the accumulation of errors for many years did not mention her or being alarm them, according to the minutes required level control, as the mutual trust to the public an urgent need to avoid large contractions in deposits weakens the banking system and economic therefore also in the experiences of the Netherlands and the United States.
He said Antoine importance of taking into consideration what left untouched these banks from shareholders and depositors, to by members of the Board of Directors The biggest shareholders share, stressing the official president for the crisis experienced by the Bank on the application of the decision on the rest of the shareholders and depositors accounting, as well as efficient and fair careful monitoring and communicating information to the competent authorities to take appropriate action, alerting banks so and to prevent the trusteeship status it, because you need follow-up to the concerned authorities, a central bank and the Department of Registration of companies and the body and the Iraqi market for securities, in addition to the Ministry of Finance, and the development of control for the protection of shareholder and deposited in these banks.
The central bank imposes custody of banks that have not fulfilled their financial obligations, according Article (59 ) in the door atheist ten banks Law No. (94) of 2004, which states: 1. Central Bank of Iraq appointment of an observer on the bank in the following cases: (a) when deciding that the bank does not meet its financial obligations, including, for example, does not limited to, obligations relating to deposits, when due, (b) when at least the bank's capital for 50 per cent of the minimum capital required by law or required by a regulation of the Central Bank of Iraq.
He also noted the Deputy Chairman of the Forum to the need to form joint committees to monitor the work of banks, Especially that the mechanism used is to appoint a representative of the central bank in each bank, watching the mistakes and problems and obstacles and then deliver them to the Central Bank.
He suggested Antoine reconsider this issue by specialists of the Central Bank, and to support those banks and bring it back to the market in moderation and make amendments and changes in the management and supplying them with the elements of an efficient for the advancement of its work to ensure an organ bank integrated and sobering responsibility to support investment and for economic development of the country and advance the process of reconstruction. And finds specialists, economists take this kind of sanctions against banks may give a negative signal to the foreign investor presence stumbled, and that the environment is ripe and repellent for investment.
In contrast Observers Economists to private banks indicators have evolved dramatically in the tools of work have brought modern technologies in the pan dealings and financial trading session and has been a pioneer in the introduction of electronic committed to clearing system restructuring capital, along with its commitment to the instructions of the Central Bank about it, as well as its training and development Mlakatha intensely What has increased public confidence in their services.