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Exchange: Trading decline because of the increased capital of banks without investment
03/10/2015
BAGHDAD
Iraq Stock Exchange confirmed, Tuesday, that the lack of liquidity and increase the capital of banks without the expansion of investment and borrowing base contributed to a decline of trading and led to a decline in stock prices, while carried the stock market "community banks" responsibility delayed obligations with the depositors, the central bank economists called for exercise its oversight role in the follow-up to the market in accordance with modern banking systems
He said Iraq Stock Exchange Chairman Abdul Razzaq al-Saadi said in an interview for the "long" that "trading and stock prices decline in the stock market problems occurred because of a lack of liquidity in the country and to increase banks' capital without a mechanism to take advantage of this increase in the expansion of investment and borrowing base situation,"
noting to "lack of seriousness of the registrar of companies in the follow-up to contribute in respect of the meetings of the Board of Directors and approval of the minutes and follow-up feasibility credibility that drain large amounts of liquidity in the real places her studies companies."
Saadi said by saying that "the BSA is reluctant to ratify the final accounts of mixed companies and take the approach traditionally old is not consistent with the reality of the market economy," explaining that "the work of the mixed sector companies is another laggard, in addition to the lack of follow-up ministries, and the ineffectiveness of the members of the Board of Directors in the private sector. "
He stressed that "some private banks delayed from its obligations with depositors, which shook the confidence of banks and special effect on securities trading," pointing out that the central bank does not take swift action in this regard. "
For his part, said an expert on economic affairs Maytham coffee in a statement to the "long" that "the relationship between the banks and the central bank must have a supervisory relationship and extention works on care and Relay and ripening, lost in the presence of a banking system is still in its infancy in many of its aspects."
He Laibi saying that "the banking system is dealing with the public does not believe in deposit banking and modern tools, and currency rates in circulation is still great, as well as technical methods are not up to modern systems, in addition to the Iraqi market is still not able to absorb the funds in the system banking and the use of those funds in the areas of speculative trade and services and not the production and support the real private sector. "
"The role of the central bank does not need to turn to help banks in such cases starting from attempts at persuasion literary passing guideline and indicative role down to penalties and guardianship," but he also said that "the reality is that the central bank, and because of the transitional economic conditions, and chaos Administrative and suspicions of corruption, he became unable to align the requirements of economic freedom, openness, and meet the requirements of the internal market and the needs of the public, and the use of its oversight role and indicative. "
He said "It's hard to find common understandings between the banking system and the central bank, within that data," pointing out that "the banking system in Iraq is working within the atmosphere of a market is active and internal requirements aimed at achieving the goal of profitability whether consort with state requirements of the Central Bank and the goals of development and stability, or not consistent. "
The expert pointed out that "the central bank put a lot of banks under guardianship, in the previous period," noting that "most banks do not operate according to international banking standards, or even Arab."
He explained that "the Central Bank of the development of standards in line with the conditions of the country, and deal with the banks in accordance with these standards, causing confusion in identifying some of the banks that might be contrary, this as well as favoritism and personal relationships that may represent attribute the phenomenon in such cases."
The head of the Association of private banks in Iraq and Wadih Handal (September 24, 2014) that private banks are facing the problem of debt repayment by borrowers because of the events taking place in hot and provinces including Blanc threatens to bankrupt some. "
He said economic adviser to the President of the Government the appearance of Mohammed Saleh, said that this debt is not only stalled but it is impossible to be collected in the short term, and select two ways to resolve the first an "adoption hedges offset each bank and that the possibility of offset profits next year," "In the event of continuing losses to the extent of bankruptcy can liquidity support by the central bank to provide long-term soft loans or government bonds, while the benefits of hindsight symbolic crisis second solution on the other hand.
He said the Finance Committee member Ahmed Sarhan Sarhan earlier that Iraqi banks have been affected significantly by the fall in oil prices, which led to a liquidity crisis in the material, but there is no fear for her work because the country has a high oil reserves. "
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03/10/2015
BAGHDAD
Iraq Stock Exchange confirmed, Tuesday, that the lack of liquidity and increase the capital of banks without the expansion of investment and borrowing base contributed to a decline of trading and led to a decline in stock prices, while carried the stock market "community banks" responsibility delayed obligations with the depositors, the central bank economists called for exercise its oversight role in the follow-up to the market in accordance with modern banking systems
He said Iraq Stock Exchange Chairman Abdul Razzaq al-Saadi said in an interview for the "long" that "trading and stock prices decline in the stock market problems occurred because of a lack of liquidity in the country and to increase banks' capital without a mechanism to take advantage of this increase in the expansion of investment and borrowing base situation,"
noting to "lack of seriousness of the registrar of companies in the follow-up to contribute in respect of the meetings of the Board of Directors and approval of the minutes and follow-up feasibility credibility that drain large amounts of liquidity in the real places her studies companies."
Saadi said by saying that "the BSA is reluctant to ratify the final accounts of mixed companies and take the approach traditionally old is not consistent with the reality of the market economy," explaining that "the work of the mixed sector companies is another laggard, in addition to the lack of follow-up ministries, and the ineffectiveness of the members of the Board of Directors in the private sector. "
He stressed that "some private banks delayed from its obligations with depositors, which shook the confidence of banks and special effect on securities trading," pointing out that the central bank does not take swift action in this regard. "
For his part, said an expert on economic affairs Maytham coffee in a statement to the "long" that "the relationship between the banks and the central bank must have a supervisory relationship and extention works on care and Relay and ripening, lost in the presence of a banking system is still in its infancy in many of its aspects."
He Laibi saying that "the banking system is dealing with the public does not believe in deposit banking and modern tools, and currency rates in circulation is still great, as well as technical methods are not up to modern systems, in addition to the Iraqi market is still not able to absorb the funds in the system banking and the use of those funds in the areas of speculative trade and services and not the production and support the real private sector. "
"The role of the central bank does not need to turn to help banks in such cases starting from attempts at persuasion literary passing guideline and indicative role down to penalties and guardianship," but he also said that "the reality is that the central bank, and because of the transitional economic conditions, and chaos Administrative and suspicions of corruption, he became unable to align the requirements of economic freedom, openness, and meet the requirements of the internal market and the needs of the public, and the use of its oversight role and indicative. "
He said "It's hard to find common understandings between the banking system and the central bank, within that data," pointing out that "the banking system in Iraq is working within the atmosphere of a market is active and internal requirements aimed at achieving the goal of profitability whether consort with state requirements of the Central Bank and the goals of development and stability, or not consistent. "
The expert pointed out that "the central bank put a lot of banks under guardianship, in the previous period," noting that "most banks do not operate according to international banking standards, or even Arab."
He explained that "the Central Bank of the development of standards in line with the conditions of the country, and deal with the banks in accordance with these standards, causing confusion in identifying some of the banks that might be contrary, this as well as favoritism and personal relationships that may represent attribute the phenomenon in such cases."
The head of the Association of private banks in Iraq and Wadih Handal (September 24, 2014) that private banks are facing the problem of debt repayment by borrowers because of the events taking place in hot and provinces including Blanc threatens to bankrupt some. "
He said economic adviser to the President of the Government the appearance of Mohammed Saleh, said that this debt is not only stalled but it is impossible to be collected in the short term, and select two ways to resolve the first an "adoption hedges offset each bank and that the possibility of offset profits next year," "In the event of continuing losses to the extent of bankruptcy can liquidity support by the central bank to provide long-term soft loans or government bonds, while the benefits of hindsight symbolic crisis second solution on the other hand.
He said the Finance Committee member Ahmed Sarhan Sarhan earlier that Iraqi banks have been affected significantly by the fall in oil prices, which led to a liquidity crisis in the material, but there is no fear for her work because the country has a high oil reserves. "
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