Parliament calls for the central bank to tighten controls on banks and directed a warning to “Warka”

Parliament calls for the central bank to tighten controls on banks and the latter directed a warning to “Warka”

12/21/2012 (23:00 pm)

Baghdad / follow-up term

Student member of the Finance Committee of the Board Secretary Hadi Abbas, the central bank to tighten control over the performance of the work of banks eligibility, to curb corruption and money laundering at the same time face the central warning liquidation of Warka Bank for Investment and Finance, unless repaid $ 200 billion dinars.
Abbas said the news agency that some private banks lost their audience as a result of non-compliance with regulations and decisions of the Central Bank, stressing that the central responsibility because of giving up control of the performance of the work of private banks.
He added that the central bank’s demands to tighten control over the work of private banks to re-establish control them and their commitment to the laws and restore the confidence of depositors to it, pointing out that the Warka Bank is one of the big banks and the audience because of his violation of the procedures and decisions the central bank, has led him to bankruptcy.
Moreover, the central bank liquidation warning for Warka Bank for Investment and Finance did not pay $ 200 billion Iraqi dinars before the end of this month.
The bank said in a press statement that “the Warka Bank for Investment and Finance and faced several problems and committed his administration numerous errors which summoned the Iraqi Central Bank to impose trusteeship upon start act Capricorn liquidate him,” noting that “major shareholders in the bank offered several proposals for rehabilitation.”
The bank added that “he studied the options of liquidation and rehabilitation under very careful of depositors ‘interests and rights,” adding that he “noted that the liquidation of the bank shareholders’ equity exposure to risk.”
The bank said “keep the Warka Bank on this case is contrary to trends central bank in building a Iraqi bank Rezin and enhance confidence in him,” pointing out that “decided to issue warnings to the Warka Bank until the 31 of December, the current, to be repaid as agreed to deposit two hundred billion dinars in the light of what has been meeting with him, otherwise, the central bank takes action to eliminate him. ”
The central bank announced, (26 June 2012), that the trusteeship committee formed to audit the accounts of the Warka Bank will distribute financial returns that you get from bank debt among small depositors, stressing that there are ten thousands of small depositors in the bank.
Article 67 of the Banking Act provides that the Central Bank of Iraq to establish and license of the Bank of progress on the basis of Article 67 and provide it with capital by the state for all or part of the assets and liabilities of the bank subject to rehabilitation.
The Executive Director announced the Association of Iraqi private banks Abdul Aziz Hassoun, in August 2011, that the Warka Bank needs to about 100 billion Iraqi dinars (90 million dollars) to boost liquidity, while confirming the Iraqi market for securities that the Board of Governors in the Iraqi Stock Exchange has decided to cancel listing of Bank Warka from the market, in accordance with paragraph ninth of Article V of the instructions number three amended for the year 2011, which provides for the cancellation company of listing if the stoppage of trading for six months without taking appropriate action to appeal, pointing out that the Warka Bank Stopped trading since eighth of February 2010.
Warka Bank for Investment and Finance, which was established in 1999, 130 branches and 350 ATMs in all parts of Iraq.
It is noteworthy that Iraq has seven state-owned banks and 23 private banks and eight Islamic banks in particular, according to the website of the Central Bank, the banking sector is dominated by banks, Rafidain and Rasheed? Aovernmaan.

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