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Adoption of financial analysis to the control of performance and behavior of banks
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10/12/2011
Stock evaluate the performance of the banking sector in the market
BAGHDAD - Hussein al-Tamimi Tgb
Brought to the workshop organized by the Iraqi market for securities to assess the performance of the banking sector in the stock market, highlighted the adoption of financial analysis as a means in which in addition to the display requirements of the market in the quarterly reports and final accounts, as the workshop focused on the follow-up to the reality of the banks listed in the Iraqi market for securities and mechanisms work and the extent to which a banking services to the local economy in light of the adopted systems, and presented the workshop as well as compare the financial statements quarterly during the first quarter, second and third of the banks included in the regulations of the market and pause at the financial analysis of these banks and the extent of follow-up to the standards of international accounting and domestic legislation and instructions of the Central Bank as it comes to ensuring the smooth functioning of the market as to ensure equity and efficiency of the banks that traded shares in the market. Chairman of the Board of Governors in the Iraqi market for securities Leith ruled Tamimi stressed the importance of financial analysis as an important step in the treatment of the Organization of the available data in order to access to information used in decision-making process, and in evaluating the performance of businesses in the past and present, and anticipate what will be in the future, as aims to identify the strengths of the status of the institution to strengthen them, and weaknesses to develop the necessary treatment has, through access to the financial statements published in addition to the use of the information available on stock prices and general economic indicators, and he is also the common sense to develop the project and the extent to which resulted in his policies and decisions that have been applied from the effects of the activity, liquidity and profitability of the project on, thus helping to implement the financial planning of the project efficiently and effectively.
Tamimi noted that the application of financial analysis peacefully requires general knowledge of accounting, economics and the special circumstances surrounding the institution concerned and the administration, so it is better able to do the job and Taataufer the conditions is the one who works in the same institution, because the analyst outside depends on the published data only, which enables it to The deepening of the extent permitted by such information, as there is a lot of valuable information that helps in the quality and accuracy of financial analysis, but does not publish for several considerations, including being one of the secrets of the private foundation that others should not see it. Note that the financial analysis is based on the rule stemming from the experience rather than a mechanical process based on certain bases.
He noted that one of the aspects of financial analysis is the industry standard, which represents the ratios are taken to a multitude of companies and institutions that belong to the industry (or profession) and one for a specific time period, and in order to be comparable under this criterion successful need to be companies under study belonging to the industry or one profession, and of a similar size, and use the principles and methods of accounting itself, and that the data is displayed using the standard basis, and that these companies belong to one geographical area (this applies to private banks).
And Okrr say that the first need of financial analysis in the banks is the management of the bank because it is able to control performance and follow-up liquidity, in particular, as may be understood from the analysis of data banks, the Central Bank in obtaining the indicators periodically to serve the purposes of monetary policy and its goals, as well as utilized Depositors of Financial Analysis banks for the purpose of checking on their deposits and helps them to choose the bank is better according to their conviction, and requires owners and shareholders and investors in the shares of companies, banks, financial statements included with the final accounts and many of the results of financial analysis in the form of financial ratios and credit journal, tables, and forms of statistics and comparisons with the past, which shows the bank's performance and the ability of the bank's performance on the implementation of plans and budgets prior to approval, and thus be able to top owners control over the performance of the management of the bank and take the measures necessary to correct the imbalance.
The Executive Director of the Iraqi market for securities, Taha Ahmed Abdul Salam, said: on company financial reports quarterly to the Securities Commission and the Iraqi market for securities include an account of a summary of the budget from closing the semester and the nearest financial year statements compared with relative concise quarterly and annual income and cash flow until closing hinge and the stages prior to the year that provided in public and a period of not more than 60 days after the closure of the first three quarters of the fiscal year, unaudited for the company, pointing out that the quarterly reports prepared in accordance with the requirements of the form, content, and accounting standards in force and that the attached assurances and clarifications management may order the market or Authority to request for legal purposes, and must submit a financial report quarterly the first that has not been audited during the period of 60 days after the close of the second quarter of the year, and that the company be sent to the stock market and the body and create and publicly during the period of (150) days after the close of the fiscal year the company's financial statements include the balance sheet since the closure of company's fiscal year and statements of earnings and cash flow and changes in ownership of the shares.
Abdul Salam pointed out audits of financial statements included in the annual report and in accordance with the standards of international monitoring, and by an independent auditor and authorized by law in Iraq, according to international accounting standards and the extent allowed by applicable standards in Iraq, stressing that the financial statements are accompanied by a signed copy of the report control your independent observer accounts shows that the financial statements were audited according to international supervision standards and the extent allowed by applicable standards in Iraq, and it represents a vision of true and fair view of the financial results of the company.
And must be accompanied by financial statements as well as those administrative safeguards and clarifications may be ordered by requesting the stock market and the Commission, may order the Authority to grant extra time to check and report if conditions in Iraq have shown the need to do this work.
As a member of the Board of Governors of the market, Dr. Salah said: every company listed on the stock market provide the Board with the annual report within a period not to exceed (150) days from the end of its fiscal year and dissemination of media available and the required prepared in accordance with the accounting standards the window that contains the report of the Board of Directors, which must to include arrived in the activities of the company's president and its places of geographical, as well as a statement of the names of board members and positions of people, senior management, and a statement of the names of senior owners of shares issued by the company and the number of shares owned by each of them if this property is accounted for (5%) or more, and a description of any protection government or privileges enjoyed by the Company or any of its products under the laws, and described the resolutions issued by the government or international organizations or other have a material effect on the work of the company and its products, or their competitiveness, in addition to a description of the risks faced by the company, if any, and the achievements of the company supported numbers and description of important events that have passed on the company during the financial year, the financial impact of the financial work of nature is repeated that occurred during the financial year and to interfere in the activity of the company, as well as the statement of the number of securities issued by the company owned by members of the Board of Directors and the people of senior management .
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