Samir Abbas Alnasiri *: CBI's strategy for the years (2016 - 2020) and change the fundamental appro

Samir Abbas Alnasiri *: CBI's strategy for the years (2016 - 2020) and change the fundamental 

approach to banking reform

- Published in 03/09/2016

CBI launched its strategy for the years 2016-2020 in conjunction with calls for fundamental and comprehensive change issued by the Prime Minister and the House of Representatives and the political blocs to form a new government of technocrats disagree everyone views [...]

CBI launched its strategy for the years 2016-2020 in conjunction with calls for fundamental and comprehensive change issued by the Prime Minister and the House of Representatives and the political blocs to form a new government of technocrats disagree everyone views different from the specifications and competencies minister Almarjoyen view. What concerns us Kmokhtchin economic affairs and banking is what new mechanisms and policies that could be adopted by the central bank and government and private banks and relevant authorities with regard to the banking reform, according to a method fundamental change desired for the Iraqi economy in the next phase, which constitutes the banking sector and the first core in which the ring.

The central bank's strategy has identified and painted the way for reform of the banking and according to the following key objectives:

Support and achieve financial stability.

Activating the role of financial institutions and the banking sector.

Organizational structure and organizational structure development.

The development of human capital.

Activation and integration of internal and external relationships.

Since these strategic goals has been to identify the time period their applications to five years to achieve the target of 23 sub-derived which is based on the achievement of financial stability and the stability of the financial system and uncles financial inclusion and access to the institutional and structural reform of the banking sector in Iraq. But through the mechanics of analysis and action points to achieve the above objectives we note that the strategy has not set clear priorities to achieve reform and certainly that these Protozoa been diagnosed in light of the challenges faced by the banking sector due to the severe economic and financial crisis that has plagued Iraq currently causes subjective and objective displayed and no need of re mentioned.

Where it can be diagnosed with the priorities of the suffering of the banking sector, which requires the Central Bank of Iraq and the relevant government agencies to draw and to develop mechanisms and procedures addressed during the year 2016 and not to wait for five years to come, which are as follows:

Re citizens and customers in the banking sector in particular and the Iraqi private banks' confidence.

Work to increase the proportion of savings banks in proportion to the compactness outside banks where the savings amounted to 23% and 77% the proportion of compactness.

Completion of the structural and technical underpinnings of the pre-emptive censorship.

The establishment of institutions and the issuance of guarantee deposits and credit laws.

Review and evaluate the results of the banks and re-classified as certified by international companies. And to identify weak banks that need the intervention of the Central Bank of Iraq to restore its activity and bankruptcy protection.

Assist and support the banks, which have been hurt in the provinces income Daash.

Addressing currency sale and try to find alternatives window instead entirely and leave.

Strengthening the central bank in the financing of small and medium-sized projects and initiatives that will contribute to the revitalization of the economic cycle and the diversification of the general budget for 2016 resources.

Re-examine the organizational structure and technical and administrative CBI government and private banks with confirmation of the principles of governance and identify interference owners in the implementation of that and for the purpose of conducting a fundamental change of approach to banking reform as stated strategy in accordance with the insight into the priorities and challenges facing the Iraqi banking sector suggest the implementation and application of the visions and the following ideas :

First : the central bank to study and analyze the reality of the government and private banks by reviewing, evaluating and rating these banks based on their financial statements and the results of its operations for 2015 and the adoption of an evaluation indicators and clear and based to force banks and international law and standards.

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And assigning a specialized team in financial analysis and Thdedmaeijer efficient performance of the banks in all areas of banking administrative and banking and credit work and prefers that this team is international independent and impartial, keeping in mind the results of the US evaluation system for the years 2013 and 2014.

And to identify banks that continue to work in the banking sector or not, banks that are proposed merged with other banks in order to increase the efficiency of their work and to change the current departments specialized and efficient and develop the work of the good and discreet banking departments and help them to continue to work within the Iraqi banking sector within the safe and proper considering contexts that the banking sector is the foundation in building the national economy.

Second : The Central Bank of Iraq full control and supervision of the banking movement in Iraq by focusing on Proactive control the electronic office and field and a programmer and outline and identify irregularities and lapses and excesses of the executive management of bank and take corrective action , and sometimes a deterrent after giving them the time necessary and sufficient to correct and reform .othml legal liability to the board of Directors and Executive management and specific and clear.

Third - the application of the Council of the CBI 's decision management controls on the nomination of board members and staff leaders in the banking and focus on professional competence and functional integrity and reputation of personal, commercial and specialist expertise.

And the application of the principles of corporate governance and the separation between the owners and executive departments and not allow them to intervene at all executive action can Malkin specialist advisers to adopt in the preparation of banking plans and determine the efficiency of performance and follow up the implementation Akhtth Council and in a manner commensurate with careful money shareholders and customers.

Fourth - restructuring of State - owned banks and work to be privatized in accordance with the memorandum signed with the World Bank with a focus on its contribution with some discreet banks in the private banking sector , and by no more than 25% on these banks managed the mentality of the market economy and is regulated by the Office of control and decision - studied to establish a development bank steps the investment involved capitalizing the state by no more than about 25% , and is managed by the private banking sector and the state will undertake the guidance and supervision of the accounts to monitor and audit BSA subject.

Fifth : - The Central Bank of Iraq to reconsider its policy for control of monetary policy, specifically its mechanisms and tools related to maintaining the Iraqi dinar exchange rate against foreign currencies and this requires the study of the subject of an auction and sell the currency and the bank to secure the Iraqi dinar to the Ministry of Finance and the possibility of financial role and dealing in foreign currency do .oatba style of documentary credits instead of foreign remittances currently approved in order to preserve the integrity of the foreign exchange.

Sixth : the establishment of a deposit insurance and credit guarantee company making the bank contributes to the supervision and participation in the management and prevention of risks.

Seventh : activate and encourage the development and financing of small and medium - sized projects of economic feasibility and development and to achieve the goal of reducing unemployment and without the complexity of monetary measures and make the implementation process is one of the approved evaluation criteria for banks to 2016 initiative

Eighth : the central bank to form an advisory committee in conjunction with the Association of Banks, experts and advisers economists and bankers from the private sector provides advice and expertise to the Board of Directors of the Bank and their Circles competent and before important decisions on monetary policy industry and its impact on the economic situation in implementation of the recommendations of the Third Iraqi banking conference held at the end of 2015 .

IX : the central bank to reconsider the administrative structure and the organizational and technical Central Bank of Iraq in line with its strategy to include departments, rehabilitation and distribution staff in proportion to the current situation of the bank and the banking sector and future outlook for the years 2016-2020

(*) Researcher and economist

Copyright Network Iraqis economists. Allowing re-publication, provided reference to the source. 03/08/2016

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