Experts: professional competence and financial capacity of most important conditions for the establishment of banks
Experts: professional competence and financial capacity of most important conditions for the establishment of banks
28/06/2014 (00:01 pm)
BAGHDAD / Ibrahim Ibrahim
Committee called the economy the parliamentary central bank need to address the crises experienced by the private banks according to the laws and regulations in force, and in a more flexible, while stressing Economists on the necessity of making sure the professionalism and financial capacity before giving any license for the establishment of community banks may be fake and the interface to money laundering major .
A member of the parliamentary Economic Committee Mahma Khalil from the Kurdistan Alliance in an interview for the “long” that “the laws and instructions of the Central Bank at a standstill, and private banks in dire need of supporting institutions to Ttaiwiramlha economic, and this also needs to strong will to implement the legislation within their contexts correct.”
He added that “the private banks provide services to citizens not bad, despite what the country is going through the security conditions and the exceptional economic, so it has become necessary to review the instructions for them.”
Khalil said that “match the actions taken against some of the private banks by the central bank with the legal and constitutional mechanism will contribute effectively to the strengthening of the economic and financial side of individuals and companies have been the biggest.”
He said the “security confusion experienced by the country requires auditing and wait any steps that would harm the interests of citizens and customers with some of the banks, contrary to simple commands and ineffective.”
He stressed that the “Committee for the economy will be prompted the central bank explanation for cases of the hand and the declaration of bankruptcy of some banks frequent to find the necessary solutions.”
It is noteworthy that the central bank may impose guardianship on a number of private banks, including Bank of the economy, investment and the Warka Bank in a move to keep the funds of the bank customers and is not affected by the Iraqi economy.
According to the Central Bank, he was based in the conduct of this to the Banking Act No. 94 of 2004 in Article 40, which enables him the authority to supervise and control the banks operating in Iraq, the text of paragraph 1 of Article 59, which refers to appoint the CBI guardian of the bank when the central bank decided to that the bank does not meet its financial obligations when entitlements.
A member of the parliamentary Finance Committee Abdul-Hussein al-Yasiri in an interview for the “long” to “activate the work of private banks, according to the Central Bank Law is a great support for the national economy.”
He added that “the hand or the bankruptcy of a number of private banks frequently puts the central bank and the procedures for the many questions must be interpreted in a scientific helps not to damage the reputation of the Iraqi economy.”
The Yasiri on “the necessity of activating the regulatory side of the work of private banks through a contract with the companies banking service to monitor the situation of the banks and the financial efficiency and cash on a daily basis as exists in economically developed countries.”
He said the “State-owned banks control most of the country’s financial movement, born frustration with the private sector and civil represented banks and their inability to assign investment projects and construction of all economic aspects.”
He explained that “the bankruptcy of some banks and their disappearance is mysterious and fast necessarily led to the failure of citizens to deal with most of the civil and private sectors, including banking.”
He pointed out that “the central bank tried multiple times to maintain the stability and efficiency of the ability of banks, especially the civil, through regulations and instructions issued by the real-time between now and then to deal with bankruptcy cases and others.”
A large number of citizens to withdraw their deposits from private banks with the acceleration of news from the bankruptcy of some of the large increase in the number of banks abnormally.
The Ministry of Finance decided to put controls tougher on banks because they did not lead its anticipated role in the economic activity, and the process of opening a large number of private banks in a relatively short time, but was unable to play its supposed to what led to the occurrence of some of the financial problems.
In turn, the economic expert Mostafa Mohammad Ibrahim “long” that “procedures to give licenses to create a civil, non-integrated banks legally and do not fit in with the current economic policy of the country.” “The increase in the number of private banks rapidly and mysterious led to the creation of an economic environment convulsive and undergo a lot of impurities such as money laundering, embezzlement, and other chronic diseases, economic.”
Ibrahim explained that “the presence of influential figures working behind the scenes to weaken the national economy and the establishment of banks and fake Atdom only a limited period and then shut down for unknown reasons.”
He stressed the need to “put more stringent requirements on banks operating procedures as well as the establishment of private banks in the future in accordance with the legal frameworks for Atsttna anyone.”
The majority of the private banks are managed in accordance with the Banking Act of Iraq, and it allows banks to the government monopoly of the banking business, especially after the release of the new guidelines, which calls for private banks to raise their capital to 250 billion Iraqi dinars, at least by 2013, which could make the banking sector, Ahli semi-paralyzed and to have lost its elasticity. The Banking Act No. 94 of 2004 in general, laws advanced in the world, but he has abounded notes about this law from those who covered, due to the lack of clarity in some of its articles and circumstances raised, prompting a large number of banks to claim the need to be modified to keep pace with operations evolution of the international banks. And that in spite of the proliferation of private banks in Iraq, which amounted to more than 30 banks, but the banks did not play a pivotal role in the economic development process in Iraq because of the small banks in addition to the move away governmental institutions to deal with it because of the reluctance of some private banks in their work.
With the development of the central bank three-stage plan to raise the banks’ capital to 213 million dollars by June 2013 to stimulate lending at a time when Iraq is recovering from sanctions and the U.S. invasion in 2003.
It is noteworthy that Iraq has seven banks owned by the state, and 23 private banks and eight Islamic banks in particular, according to the site’s central bank, while dominated by the banking sector, banks, Rafidain and Rasheed Aovernmaan, and are currently undergoing restructuring in order to pay off the debt that accumulated after years of war and sanctions.
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