Iraq is seeking to develop a plan to prevent the collapse of the banking institutions

Views 44 Date 20/05/2016 - 20:19

Economy News / Follow-up .....

Financial and banking expert Iraqi Samir Nasiri said that the reform of the banking sector operations require a plan to address the financial collapse experienced by some private sector banks, due to lack of current liquidity, particularly in areas where the penetration of terrorism, as well as the adoption of new financial monetary policy lead to a comprehensive reform The restructuring of the public and private sectors.

He stressed the importance of «the development of information and banking technologies of modern forms all technology, and focus on disclosure and transparency of financial data to banks and customers, and the adoption of instructions and mechanisms that contribute to the development of human banking resources, especially the protection of banking leadership competencies as a national economic expertise, thus contributing to the stability of the banking business and its development» .

He stressed the importance that the «reforms include the creation of investment funds and the contribution of the banks to finance large and strategic projects, and focus on increasing credit and finance, soft loans and deposits in the activation of the employment aspects of investment, reconstruction and advancing the process of economic development». And called for activating the role of government in building a strategy for the development of small and medium enterprises and adopt clear mechanisms involving the private sector in the form of an actor, and continued shifting from the government sector to partner then head to the commander of the market.

Alnasiri called «activation proactive supervision and control and electronic controls on banks and issuing instructions and regulations guiding the new executive, and to develop mechanisms for coordination between fiscal and executive two policies». He stressed the importance of reviewing controls selection of members of boards of directors and managers Commissioners and define the duties of the Council planning and non-interference in the executive management of the banks and to focus on economic and banking specialization and expertise of the members and reduce the number of its members to only 5, and the adoption of advisers and experts, bankers specialists to supplement the board and executive management advice and expertise.

He pointed out «the need to amend the laws governing the banking business, also called on the sector to contribute to the economic development and diversification of other resources and development away from oil.» He said: «There is a need to propose principles and strategies effective to build introductions and features of the transition from the banking to the developmental role through addressing all the mistakes and lapses in economic construction over the next four years, with the routing of success and achievement of the goals according to what is included in the government program».

He added: «We have not touched a clear change in the banking field of work over the past year, prompting the central to the development of a plan to establish sound foundations to promote the applications of monetary policy and the development of the banking sector and support the form in which it achieves what is stated in the government program and economic reforms package».

Financial data showed that the total assets of the banking sector of 225 trillion dinars (203.3 billion dollars), about 204 trillion of them to the government banks, and 21 trillion in private banks, while total capital nine trillion dinars, 0.7 of them with private banks and 2 trillion at State-owned banks. The total deposits of 75 trillion dinars 0.86 percent than that of government banks and 14 percent for private banks.

The economic circles and the Academy confirmed that the banking reform requires a real and radical banking transactions coup starts from traditional roots, any of the service on a personal level or business locally or globally on the basis that the progress of the country's economy and growth are measured the extent of the readiness of banking institutions to accept global changes rapidly and activate trade and formulating monetary and credit policies to suit global and policies, taking economic Privacy of Iraq in mind.

She pointed out that «the banking sector redouble efforts to make up for past failures, in light of initiatives and calls for the development of the private sector and encouraging initiatives and the reform of financing structures and lending, and the adoption of a new foundation to diversify sources of income and create job opportunities and improve the business structure and the investment climate.

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