Consensus on the banks failed to keep pace with the evolution of the sector .. expert
Consensus on the banks failed to keep pace with the evolution of the sector .. experts stressed the need to update the structure of institutions and strengthen oversight
January 24, 2016 17:11
The whole Iraqi experts on the banks failed to keep pace with development in diverse aspects are de-banking business, and stressed the need for the Central Bank of Iraq and I do stronger in policies related to updating enterprise architecture management and strengthen oversight role.
He attributed the banking expert conciliator Hassan Mahmoud, the reasons for failure of the Iraqi banking sector current Bhacleth, to many factors including the «weakness and confusion in quite a few of the instructions issued by the Central Bank of Iraq between now and then, and withdrawn or modified after days». Not overlooked «the low efficiency of the banking supervision and professionalism, but lack of seriousness.»
Promised that these control methods on the banks «not kept pace with the evolution of central banks in developed countries and in neighboring countries, including preventive controls, in addition to the lack of the banking system to the corporate governance rules needed to monitor the performance of boards of directors and those of the Executive, and validation of the commitment of the laws, regulations and instructions, and the lack of sector for culture Banking risks and ways to evaluate, manage, and ways to mitigate or reduce them. » Also included reasons, according to Mahmoud «emergence of the governing bodies and departments of a bank is not related to the professional nor experience nor knowledge of banking work, and lack of qualifications does not have only a sudden financial fortunes hovering suspicions about its sources».
He Mahmoud in an intervention presented at a seminar organized by the «Institute of the progress of development policies» about the relationship between private banks and the Central Bank of Iraq, and the participation of experts in finance and economics, that this sector «small and marginal does not exceed its contribution to gross domestic product ratio of 1.5 percent».
He said, in an interview carried by the «life» International: «If we add to him the financial sector increase to 1.75 percent, which is facing the problem of the dominance of state banks to between 85 and 90 percent of the sector's assets». He said that it «hinder the development of private banks, which records diminutive in credit relative to output, as the value of what gave him the banks of credits 23.6 trillion dinars (about US $ 23 billion) in 2013, 8.7 percent of GDP, as opposed to 55 in percent in the Middle East and North Africa. Including the share of government banks and reached 72 percent, while the share of the sector capital is 19.5 percent only. »
He pointed to another problem facing the banking sector «The faintly funds that do not meet the needs of development capital, as well as other sources of funding». He pointed out that the number of banks operating «is 54, including seven state-owned and 30 private banks including 23 commercial banks, 7 Muslim, while the number of branches of foreign banks 17.» And saw economist Ahmed Abrihi, that «a manifestation of failure in Iraq is not the government's ability to enforce the law, as the central bank is unable alone to impose control and evaluate the performance level of the banking».
Financial Advisor to the Prime Minister stressed the appearance of Mohammed Saleh, that the banking market «is homogeneous under the State-owned banks to attract capital and deposits, accounting for 90 percent of them, to keep their special 10 percent». He explained that «the last government and private banks operate according to the nineteenth century systems.» He announced that «adults who get a credit of 12 percent, and with each failure banking transaction due to tripping withdraw 32 treatment», as the private banks «very conservative and government contrary, is evident from the large loans granted by the recent size».
Turning to the currency auction in favor of a file, adding that it «is important and necessary», and asked «You could create a bank to the private sector will be the opening credits of his duties and the centrality of the shift gradually to cover imports?».
The banking expert Samir cautioned against Alnasiri of «the collapse of the banking system in Iraq soon in the event of problems faced during this year did not address». He stressed that the collapse «means the collapse of the economy.» He pointed out that research and studies and indicators Results «do not receive the attention evidenced by the decline in deposits recorded by the five largest banks in Iraq, as well as the low liquidity and operational, credit and capital investment and profits, without losing sight of the impairment of assets.» He stressed that these indicators «serious».
He described the MP Mehdi al-Hafez control which is supposed to be exercised by the central bank to «weak and confused.»