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06-19-2013, 08:54 PM
Mokhtassan: transparency, the need for the advancement of the banking business and reduce corruption (http://www.alsabaah.iq/ArticleShow.aspx?ID=48609)

19/06/2013 12:00 AM

A proposal to integrate the private sector banks

BAGHDAD - Hussein ثغب of Tamimi

Someone Mokhtassan in the banking sector challenges facing the development of local banks that represent the backbone of economic development, where the regulated flow of capital trends drawn investors and employers, but it requires more advanced systems that draw paths banking business in the country, the center of a new proposal for the integration of private sector banks .

Rapid changes

Academic specialist Dr. banking affairs. Sadeq Al Shammari said: there are challenges facing banks and financial institutions in Iraq as a result rapid changes in technology, information and financial crises, pointing out that, despite the considerable efforts made by the Monetary Authority and the Ministry of Finance to support the banking sector in Iraq are still these banks face significant challenges because of the circumstances experienced by the the country as well as the need for staff to have qualified banking and development of the banking business and the use of modern technology as a network communications and information systems and the Internet.

Overcome difficulties

He pointed to the importance of the adoption of methods of control and disclosure of financial and accounting financial statements and that these factors can be considered as challenges in front of Iraqi banks, which is working hard in collaboration with the Central Bank to overcome.

Guideway regulations

Shammari urged the importance of adhering to the regulations and rules, which represent the work of banks and the basis of its activity, should also be commitment to governance and controls and mechanisms of good governance as evidence of the work of reform, institutional and financial spared from corruption operations.

Corrective action

He pointed to limit some of the problems and constraints faced by financial and banking institutions in Iraq after studying the reality in which they operate in the weak and limited interest in the mechanisms of internal governance and external by the supervisory authorities and regulators for the purpose of forcing banks and financial institutions to take corrective action and limited or absence of special units of the stress tests, which are part of the culture of governance, as well as the lack of specialized units in the financial and banking institutions Iraqi take on the responsibility to follow-up and implementation of legal rules and regulations within the organizational structures through lack of assessments of internal audit procedures and external.

Culture of governance

And between the presence of weak and limited interest in studying the culture of governance and mechanisms of internal and external analysis of types and forms, and examine the impact on the performance of the banking and address the risks of any lack of focus on governance in the resolution credit as well as lack of awareness of governance and mechanisms of the financial and banking institutions and its importance, and pointed to the absence of dimension strategic administrations banking the role of these mechanisms in the banking performance and mitigate risks and to avoid crises and collapses deficiencies of financial and administrative incentives to senior management in order to achieve work properly and effectively.

Moral values

He said that the existence of methods of financial compensation and administrative consistent with the moral values ​​of the bank and its goals and ستراتيجيته and banking environment to work towards the benefit of the bank rather than to achieve the benefits of real-time, in addition to lack of controls and mechanisms to control the structure and installation of boards of directors and their responsibilities and their powers in addition to weak controls and mechanisms that govern the issues of disclosure and transparency and the rights of minority shareholders in addition to the internal control to ensure that the functions of internal and external audit and an independent risk management.

Relationship with shareholders

He said we can identify some indicators through some of the special mechanisms of governance, whether internal or external, which contribute to the proper application and precise rules and regulations that govern the relationship between shareholders and managers, creditors and other stakeholders from the perspective of the fields and responsibilities and that the proper application of the mechanics of governance necessarily believe in administration sound and stable for banks and avoid the negative effects of mismanagement, moral and technical divided into internal governance mechanisms and external governance mechanisms.

New System

Smiralnasiri banking expert pointed out the need to prepare a new system to ensure control over the companies and financial institutions outside banks dealing with remittances to protect the interests of foreign citizens and anti-money laundering operations.

Encourage loans

He stressed the importance of encouraging banks to make loans in order to invest their money and reduce risks faced and overcome the limits of the purposes specified a certain percentage to the bank's capital and reserves set out in the Law of the Central Bank of Iraq.

Bank branches

He called for encouraging banks to open more branches and offices banking in various provinces to increase density banking accordance with the conditions specified by the CBI with the provisions of censorship on the performance of banks during the follow-up field and office of its activity by the monetary authority and note the abuses taking place in the instructions banking and processed first Powell.

Large units

He pointed to the importance of developing a plan to achieve future mergers between private banks to set up and large-sized banking units can occupy an important space of the local banking business. As the importance of obliging all banks apply capital adequacy ratio according to Basel Committee (3) According to the announcement issued by the Commission at the end of the year 2010.

As well as the establishment of the Institute (training, consulting and banking research) contribute to government banks in the membership of its board of directors that plays a role in the development of human resources and banking building a sound base for the development and modernization and deployment of banking culture.