Shammari: Adoption of corporate governance need to attract funding

3/30/2016 0:00

BAGHDAD - Hussein al-Tamimi Tgb
Many financial institutions have expressed great interest in the subject of governance that addresses all forms of manipulation Balmekdrat gives smooth high for the implementation of the business, prompting economists to call for the adoption of good governance mechanisms in order to achieve economic viability of the country.

World Union of Arab Bankers member d. Sadiq al-Shammari said that most of the banks and financial institutions has paid increasing attention to the issue of corporate governance as it focused attention to this subject, especially after the growing role of the massive expansion of the private sector in the economic life as it has become to this sector is important and vital role of the foundation in the development of the economies of countries.

Sources of funding

He said on the sidelines of an economic conference attended by «morning« The importance of governance is its ability to attract and attract local and international sources of funding for expansion, growth and development, and to maximize the market value of the shareholders and the shareholders and supports competition in the market competition, as well as their use and means that the mechanisms that the development of investments in all fields in order to achieve profitability and minimize the risk, also supports the stability of financial markets in the banking systems, which leads to efficiency and the economic value required and increase the efficiency of resource allocation, pointing out that they contribute to the activation of controls to protect the banks and financial institutions resources and work to strengthen investor confidence, and to ensure that disclosure and transparency in the menus Finance.

Commitment management

And mean governance group rules and principles ambitious and targeted set by the Board of Directors to help and assist the administrators in the commitment to management in a transparent manner and to disclose all data in the framework of the goal of the matter and professional behavior on the basis of a clear base to contribute in that all the players through their activities in the field of management in order to achieve a message Foundation and its goal Desired.

Shammari said the need has emerged to governance after the economic collapse and financial crises in many countries in the nineties of the twentieth century, and also after the accounting and financial collapses of many international companies and the subsequent bankruptcy of many banks and financial market liberalization and globalization and technological progress, also it adopted as a means to provide protection against corruption and abuse Administration.

Control Systems

He pointed out that governance is working on regulations to ensure that reduce fraud and corruption, conflict of interests and put control and audit systems and accountability to the departments of banks and members of the Board of Directors and Taatbna Systems seizes the issue and distribution of rights and responsibilities, and enhance the confidence of stakeholders and stoke their role, indicating that it cringe difficulties facing the application and implementation of corporate governance mechanisms in the financial and banking institutions in Iraq.

Large landslides

He said al-Shammari said that the most important obligations that called orientation towards the governance of large landslides in major companies and public scandals that followed the collapse, as well as the intensification of financial corruption as happened in major companies as well as the explosion of the financial crisis in Southeast Asia in 1997, Mexico and Argentina, as well as lack of the existence of legal and regulatory systems for these companies and institutions in many countries and the weakness of supervision and control systems, and financial freedom for many companies and openness Global.

He concluded by saying: We infer through the reasons for the adoption of good governance that there is a problem (mismanagement) Whatever the reasons, and therefore the administration of good governance will lead to curtail many of the problems that accompany the work and the completion of projects.