Picture: the governance requirements of the banking industry supports

Picture: the governance requirements of the banking industry supports

11/10/2013 12:00 AM

Activate their role contributes to the process of economic development

BAGHDAD - Farah pumice

Aims central bank's decision by increasing the capital of private banks, to commensurate with the transitional phase through which Iraq, and in two ways either increase the actual thereof, or a merger between weak capital to create large banks, in order to improve its reputation to prepare for the establishment of relations of Arab and international firm. Comes at the time of calling Economists need to apply the principles of good governance and the separation of Directors for the capital in the private banks and the government, arguing that increasing the capital under the current circumstances has a negative impact on the capital market in Iraq. economist and banker Dr. Majid picture told ( morning): The «Arab and international banks did not gain international reputation and its ability and international relations through their capital and assets of the huge only large, but by the application of the principles of good governance and the requirements of international financial relations.

He considered that the central bank's decision theoretically correct and important trends, taking into consideration the economic and political situation and security in the country, while taking appropriate measures to restructure the public and private banks, according to the requirements of the global banking industry.

It is noteworthy that the central bank has issued instructions in February 2010 obliging banks approved the exercise of banking increase their capital to 250 billion dinars during the period of three years from the date of issuance of this resolution and to be (100) billion in one year and 150 billion dinars within two years, and (250) billion dinars during the three years of the date of the decision.

And saw Suri that the increase in capital of banks has a negative impact on the capital market in Iraq, where the lead to pull the equivalent of 5 trillion Iraqi dinars from this market which may be employed in the areas of productivity, without the presence of ports to be used in the development process, indicating that led to low share prices of these banks in the Iraqi market for securities and inflict investors in this area unjustified losses.

He called on all banks to use modern technology in the banking business, particularly with regard to the use of the banking system overall and its commitment to international standards, despite the issuance of the instructions of to facilitate the implementation of the Banking Act on January 3 of 2011 and that are consistent with international standards and recommendations of the Basel Committee, but he has so far have not been applied.

He urged the application of the new law for banks government and Islamist approved by the Supervisory Committee of Supreme restructuring, which is still in the corridors of the State Council, referring to the need to take the necessary measures to complement the measures to increase capital, to encourage the merger, as it will ensure a good reputation among all banks internationally.

He called the review of all procedures related to control and supervise the banking system, because the foreign banks to Aatalb them only deposit $ 7 million seed capital operating be withdrawn as soon as obtaining a license from the Central Bank, and it may do all banking operations, similar to banks local, including entry foreign currency auction, calling to reconsider the laws governing the work of the banking and all procedures related to banks, for the sake of the country and the banking system in particular and the overall financial system to activate its role in the economic development process.

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