Al Nassiri. The need for international standards for banking sector reform

10/08/2016 13:41

Invited Member of the International Union of Arab bankers, Samir Abbas Al Nassiri, the need to address and fix the banking sector with the support of the Central Bank and making crucial decisions and quick to correct all negative tracks, to address the imbalance in the banking business and restore public confidence to deal with banks and the central goal of increasing the proportion of savings on the expense ratio of compactness of the money supply. Al Nassiri suggested the need to start the development of information technology and techniques of modern banking in all its forms, with a focus on disclosure and transparency of financial statements of banks and customers as well as modify laws that regulate banking business in accordance with the requirements needed, accompanied by new financial monetary policy leads to a comprehensive reform and restructuring of the banking sector and Government, not to mention putting contexts and financial policy coordination mechanisms And the Executive.

He stressed the activate and deactivate proactive supervision and control and electronic banks according to prepare and instruct new operational guidance and regulations begin strategic actions the Central Bank for the year 2016-2022 would be conducive to economic development, as well as to develop and build clear mechanisms involving the private sector and that will be capable of conversion to an active partner and market leader.

Al Nassiri called to the importance of focusing on increasing credit and finance soft loans and activate hiring deposits in investments and reconstruction, as well as the development of information technology and modern banking techniques with emphasis on disclosure and transparency of financial statements of banks and customers, accompanied by guidelines and mechanisms that contribute to the development of human resources in private banking expertise and banking resources, pointing out that those proposals together would contribute to the stability and development of the State banking reform.

Al Nassiri pointed out, the importance of developing a plan to deal with financial meltdowns afflicting some private banks because of the current shortage of liquidity conditions and affected financial and material especially in hot areas subjected to terror and setting new standards for the classification of private banks in accordance with international standards and review board member selection controls, managers and Commissioners determine the duties of the Board planning and non-interference in the Executive management of banks, focusing on the banking and economic specialization and expertise to members stating that reducing the number of members and the adoption of specialized advisers and bankers experts will Assisting the Board and executive management with advice and expertise, provided that the nomination of the Central Bank of Iraq in coordination with the Association of private banks.

He noted that the banking sector and to overcome the problems faced by most private banks which could face State banks at some future stage, requires serious action by the Central Bank and Ministry of finance in cooperation with the Economic Commission in the Council of Ministers and the Association of private banks go to study and analyze business results and financial highlights of the Iraqi banking sector, concentrating on deposits and liquidity and financial position and capital and reserves and the internal and external banking revenues and profits and more importantly economic outlook of the continued fallout from the financial crisis Country during the years 2016-2017 in light of global economic volatility and variables.

And the importance of involving experts in the private sector, bankers and benefit from their experience and World Bank reports on the financial situation in the country to produce the outcome of important decisions to save the Iraqi banking sector from collapse by commissioning a neutral accounting work in accordance with the standards of international standard to determine the efficiency of each bank, pointing out that in the light of the results of the assessment are categorized according to private banks approved standards in the areas of investment and operating costs and operating and financial and investment activity and liquidity and capital adequacy and development services For customers and in the forefront of technical development in accordance with modern banking systems, as well as in the light damage banks shouldered because of terrorist acts and bad debts.

Regarding the classification of Al Nassiri said the possibility of banks rated into three large banks include first mattresses with a good financial position and funding, while the second includes the medium-sized banks and financial position and capable of evolving as the third-ranked banks include experiencing weakness in banking activity and liquidity rates drop to a minimum by less than 5% of total deposits werasmalha real less than 250 billion dinars and bad debts have exceed 50% of the capital And higher expenses Its revenues.