The decision to raise banks’ capital and true integration is the best solution

The decision to raise banks’ capital and true integration is the best solution

10/28/2013 12:00 AM

The decision to raise banks capital and true integration is the best solutionPresident of JSC Ā«morningĀ»:
Baghdad morning
put specialists proposal contributes to the increase of capital of private banks, through a merger with each other to form the banks giant be a base sober for investors.
Chairman of the Securities Commission, Dr. Abdul Razzaq al-Saadi said in a statement (morning): “The central bank’s decision, which was issued two years ago to increase the capital of private banks is the right decision, and to encourage them to increase their capital to be in refineries international banks or close to it,” adding in his speech “as in the experience of Lebanon when it owns banks -capitalized small, because the Central Bank of Lebanon plan encouraged the integration of these banks has contributed an effective contribution to their capital and become one of the banking giant after the merger. ”
It is noteworthy that the central bank has issued instructions in February 2010 recognizes which compel banks authorized to exercise banking up their capital to 250 billion dinars during the period of three years from the date of issuance of this decision and to be (100) Milirkhalal one year and 150 billion dinars within two years to reach 250 billion dinars during the three years from the date of the decision.
added Saadi said the currency bloc in the Iraqi market is limited to invest in this sector, calling on the private banks with capital small to merge with each other to be a bank sobering and powerful, especially as the giant companies invested dealing with large banks broad-based integrated with each other and then broaden the base investors.
noted the Chairman of the Commission that the process of integration, according to the concepts of owners is very difficult because some of the banks owned by the Iraqi families, believing that the banks family future is weak, on the contrary banks owned by more than one party in the community shall be developed more and be of interest to most everyone, because the prices of shares less than one dinar and therefore do not achieve revenues and profits are good.
, but al-Saadi called for the central bank to show flexibility in dealing and allocates incentives for those who wish to integrate private banks to make them strong and durable, urging the banks to develop a plan sober for integration.
The Chairman of the Commission to The banks that did not increase their capital suffers from several problems, including the issue of marketing and capital, trust and the like, considering that this situation affect the financial market, because the monetary mass in banks will be reduced so as to withdraw capital, especially that some of them listed in the stock market, and so will be the market value is less because their profits will be limited and then affect the market.
said Saadi, the need to give ample space to act and encouragement of private banks in all its aspects, in contrast must emphasize the central bank controls on the movement of these banks so that the work within the contexts of the market economy and the direction of Iraqi economy, saying that the bank should be engaged in his business, so it has to be cooperation and interaction in the development of the private banks, because the market economy Ainmo without growth banks, private sector sophisticated and this is not present in Iraq at the present time, he says.
stressed Chairman of the Commission on the importance of control of the monetary mass anti-money laundering if the money of people living with banknote clean are to give them adequate space to move whatever he wants, especially as the market economy does not have the black markets for the sale of shares, but work to the principle of supply and demand, as is the case in the stock market, defined money clean it means everyone filed in his account amounts exceed 10 thousand dollars, you must disclose the origin of the money, as the case in most of the developed world.
urged Saadi ministries to put their money in private banks for their support and encouragement for the advancement of private banks in the country, which supports the movement of investment and increase investor confidence in these banks.

alsabaah.iq