Iraq: Restructuring of Banks Supports Investment
|October 3, 2014||Filled under Iraqi Banking News|
Iraqi Banking News –
In order to establish a sound Iraqi banking system contributes to the process of construction and investment, has become an urgent need to take restructuring the banking reality and controls him, especially the private sector.
Economic expert on behalf of Jamil stressed in this aspect to reduce the process of slaughter banks after the fact of mistakes, leading to a negative impact on investment and foreign investor, calling on the central bank to take into consideration what Tdmh these banks from shareholders and depositors, along with members of the Board of Directors or Shareholders biggest share.
He is beautiful in a statement the “morning”, that “the decisions of guardianship or control over the private banks by the central bank may have hurt depositors, as it is paid Mbalghm in small quantities and long periods of time, which is suffering affect the reputation of the banks and in the confidence of these depositors, customers and shareholders in the market Iraq Stock Exchange”, urging at the same time, the Association of Banks to provide support in protecting the rights of the applicant and the citizen, and to address the situation of these banks before the accumulation and having to put custody or control them, especially given that the conditions of the shares of those banks has deteriorated in the stock market.
Regarding the reasons that lead to the development of custody of a number of private banks, refer expert so to accumulations of mistakes for many years did not mention her or dragging alarm them, for according to strict control at the required level, so to be called confidence reciprocal to the public in order to avoid contractions large in deposits which weakens the banking system and thus also in the economic experiences of the Netherlands and the United States.
He also noted beautiful to the need to form joint committees to monitor the work of banks, especially given that the mechanism used is to appoint a representative for the central bank in each bank called (Compliance Officer), as watching the mistakes and problems and obstacles, and stand up then and alarm them, and then deliver them to the Central Bank.
However, the expert stressed the importance of careful monitoring of efficient, fair and deliver the information to the competent authorities to take appropriate action, alerting banks so and to prevent the development of trusteeship, where you need to follow the concerned authorities, a central bank, the registrar of companies, the Commission and the Iraqi market for securities, and the Ministry of Finance, and put control of them to protect the depositor and shareholder in these banks.
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