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05-26-2013, 10:04 PM
Expert: adoption of cutting-edge banking technologies leading the advancement of banking outlets (http://alsabaah.iq/ArticleShow.aspx?ID=47171)

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25/5/13, 12: 00 am
Baghdad-Hussein thghb Al-Tamimi

Despite Central Bank efforts to develop payment systems

The expert emphasized the financial affairs Samir Al-nasiri on the need to review the work of the banking sector in the previous phase before the adoption of methods of banking reform.

He pointed out that a good indicator in the local banking lies in achieving the total deposits in the banking system (42) trillion dinars and a percentage (29 percent) of total liabilities and is an indicator of monetary and financial stability.

The "morning" to build strong banking sector depends on the degree of profitability that banks, efficiency and capacity of their capital in the face of circumstances and economic variables, such as the liberalization of the financial sector and the change in monetary policy, financial sector development and evolution of the investment climate, pointing out that there is a contradiction and witnessing taking place before the monetary policy task of directly and indirectly in the development and strengthening of financial intermediation activities and strengthening banking infrastructure building, the functions of the stability and development of the financial market no less important functions of monetary policy to control inflation And overall stability as an incubator to grow and accelerate economic prosperity.

He noted that the evidence of the past years the capital of banks in Iraq grew from (2, 9) trillion dinars in 2010 to (3, 9) trillion dinars in 2011, is a positive sign but it is insignificant to the requirements of large enterprises, while the proportion of corporate banking capital contribution (private banks) to GDP (6 percent) which is a small, while those for banks (0.3 percent) of GDP for 2011, due to increased Capital of Rafidain Bank and Rasheed Bank (300) billion dinars and the three specialist banks (200) billion dinars each.

He said that the structural weaknesses in the banking system is moving away from directed credit where non-lending practices led to a marked deterioration in the quality of banks loan portfolios, which subsequently worsened due to the unfavourable general economic situation and the accumulation of non-performing loans to reduce the ability of banks to perform the functions of mediation through reduced liquidity and increased cost of operations, and this situation may emerged figured prominently in the civil commercial banks, as well as twice the efficiency of payment systems for the system Clearing in Iraq is clearing and record system based on the actual transfer of debt instruments and credit and new method in examining these tools and depending on payment systems currently applied unevenly between the Bank and another, leading to the slow process of settlement of payments between the banking system as a whole and thus weak disclosure and control where the data vary in their comprehensiveness and accuracy between the Bank and another, making it difficult to make a comparison between him and international banks, although the Central Bank has sought to develop systemsPayments applied currently has and has staged national and project is the development of new payment systems will be implemented soon.

And ways to meet the challenges for banking sector reform said nasiri: despite the considerable efforts made by the Monetary Authority and the Ministry of finance to support the banking sector, these banks are still facing major challenges due to the country's circumstances, as well as the lack of qualified banking personnel have a weakness in banking, as well as disparities in the use of modern technology as a communication network and information systems and the Internet and not adopted methods of control and financial and accounting disclosure on menus and that these factors can be considered as challenges for banks and is working Hard in cooperation with the Central Bank to overcome them through adherence to international banking standards, including capital adequacy and financial disclosure of financial statements of banks and strategic plan for the development of the technology used in the banking system in accordance with the possibilities and the anchor banks with network connections and terminals with the Central Bank of Iraq, in addition to encouraging banks to establish mutual funds to expand the opportunities for the investment deposits.

He noted the importance of creating a banking regulatory environment allow for the development of the banking system through the enactment of a new law on banks is consistent with the current and future developments in this regard.
And the idea of creating an Association of banks is important to overcome the difficulties facing them and solve the problems between them or between them and third parties.

As well as encouraging banks to extend loans to investment funds and reduce the risks faced and overcome the limits of the specific loan a certain percentage of the Bank's capital and reserves in the Central Bank law.

And point out the importance of encouraging banks to open more branches and offices in various provinces to increase banking density rates in accordance with the conditions set by the Central Bank of Iraq.

With tighter control on the performance of banks through the field and Office for follow-up activity by the Monetary Authority and excesses in banking and processing instructions.

And a plan for future mergers between private banks to create large banking units can occupy an important space of local banking.