Economist: the need to work with international standards of banking sector reform

8/10/2016 0:00

BAGHDAD Shokran Fatlawi

require current stage development of the banking sector through a commitment to the directives of the Central Bank aimed at promoting the mechanisms of action of private banks in line with the movement of global development in this sector leading in the economic process
of Iraq and in this regard noted member of the World Union of Arab Bankers, Samir Abbas Nasiri, to the need to address the reform of the banking sector with the support of the Central Bank and to take decisive and quick decisions to correct all the negative tracks, to address the imbalance in the banking business and restore the public 's confidence to deal with the banks and achieve the central objective of increasing the savings ratio to calculate the proportion of the compactness of monetary mass.

He suggested Alnasiri need to begin development of information and banking technologies of modern technology in all its forms, with an emphasis on disclosure and transparency of financial statements for banks and customers as well as to amend the laws governing the banking business in accordance with the requirements needed, accompanied by the adoption of new financial monetary policy lead to comprehensive reform and restructuring of the banking sector government and private , let alone put contexts and mechanisms for coordination between fiscal policy
and the executive.

Electronic control said on activating the supervision and control of pre - emptive and electronic banking in accordance with the preparation and issuance of instructions and regulations guiding implementation of new and start procedures strategy of the Iraqi Central Bank for the year 2016 - 2022 will be the impetus to the process of economic development, as well for the development and construction of clear mechanisms in which the private sector to actively participate and which will be capable of recent converts to the active partner and the leader of the market.

Alnasiri called to the importance of focusing on increasing credit and finance, soft loans and activate hiring deposits in the aspects of investment and reconstruction, as well as the development of information and banking technologies of modern technology with focus on disclosure and transparency of financial statements for banks and customers, accompanied by instructions and mechanisms that contribute to the development of human banking resources and special expertise and banking cadres mode, pointing out that these proposals together would contribute to the stability and development and reform of government banking and private sectors.

financial collapses Alnasiri pointed out, the importance of developing a plan to address the financial collapse experienced by some private sector banks due to lack of current liquidity conditions and harmed financially and physically , especially in hot areas affected by terrorism and the development of new criteria for the classification of private banks , according to the international standard of standards and reconsider controls selection of members of the boards of Directors and Commissioners and define the duties of the Council planning and non - interference in the executive management of the banks and to focus on economic specialization and banking experience of members indicating that reducing the number of members and the adoption of advisers and experts , bankers specialists will supplement the board and management executive with advice and expertise,

provided that the nominated by the Central Bank of Iraq in coordination with the Association of private banks Iraqi. economic fluctuations and noted it and to bypass the banking sector problems faced by most of the private banks which could face government banks in a future phase, work earnestly required by the Central Bank of Iraq and the Finance Ministry in collaboration with the economic Commission of the Council of Ministers and the Association of private banks to go to study and analyze business and financial indicators results for the banking sector of Iraq,

and focus on deposits, liquidity and financial position, capital and reserves and revenues of domestic and foreign banking operations and profits earned , and more importantly, the economic outlook for the continuing repercussions of the financial crisis experienced by the country during the years 2016 - 2017 in the light of the changes and the global economic volatility. and the importance of involving experts bankers in the private sector, and benefit from their experience and reports of the World Bank, about the overall financial situation in the country to get out of the outcome of important decisions to save the Iraqi banking sector from collapse by assigning point of auditing neutral operate according to international standard criteria for determining the efficiency of the performance of each bank,

pointing out that in the light of the assessment results according to the standards adopted are rated private banks in the areas of capital investment and operating cost of operation and activity funding, investment and liquidity ratio and capital adequacy , and the development of services provided to customers at the forefront of technical development according to modern banking systems, as well as in light of the damage that has borne the banks because of the terrorist acts and debt troubled payment.

classification of banks and with respect to rating banks said Alnasiri possibility categorized into three first orders of large banks include the size and financial good funding situation, while the second includes medium - sized banks and put financial position average and capable of evolution , while the third on banks that suffer ranked include weakness in the banking activity and falling levels of liquidity in which to minimal with less than 5 percent of the total deposits and real capital of less than 250 billion dinars and distressed debt has more than 50 percent of the paid -up capital and expenditures higher than revenues.