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There is no solution without banking merger
Economical 03/06/2024
Yasser Al-Metwally
The curse of the dollar continues to haunt the performance of banks and cause noise and chaos in the way of their activities as long as the banks rely for their continuity on buying and selling the dollar only without practicing the banking products for which they were established.
The dollar weapon remains famous to the banks because it is their currency, and
the treasury has the right to act by preventing or allowing dealing in it.
Therefore, in such a case, it is linked to political factors sometimes and real technical factors at other times, due to the
lack of experience or
failure to follow or implement the standards it requires,
which exposes banks to prohibition penalties and the inability to get rid of them.
Therefore, banks must
leave their dependence entirely on the dollar and
return to banking activities and products
that enable them to continue in the financial market and labor market.
It must be noted that there is no provision in the law establishing banks that allows them to engage in the activity of buying and selling the dollar, as
it is exclusively an activity of banking institutions.
What is the challenge that prevents our banks from wanting to merge?
There is a truth that cannot be overlooked and requires frankness and openness.
I present this opinion knowing that it does not please or may bother some people,
but if we delve deeper into the results that will be achieved in the future, we will find that
our goal is for the benefit of the banking sector so that it continues despite all the challenges.
One of the most important of these challenges is the lack of conviction of the owners to give up the bureaucracy of management and control.
This culture is
prevalent and the
reason is the non-enforcement of the banking governance law, which separates the responsibilities of the owners from the executive management of the banks and often causes a decline in the performance of the banks.
Here we note, through a review of the most important news of the financial market and banks, especially in our regional environment, specifically the Gulf market, that
we hear and read that a merger has taken place between two or three of the largest well-known banks in their countries with the aim of strengthening financial capabilities and taking over activities related to the development of banking work and competing with banks in what... Among them are several examples that can be viewed. On Gulf electronic banking websites.
The culture of merger is an indicator of the level of awareness of the owners and beneficiaries of this merger to achieve profits and the stability of the continuation of banks in the financial market.
For this reason, we believe that any solution to the problem of our banks in the face of seemingly endless sanctions will include all banks for the reasons we mentioned without resorting to mergers to strengthen financial centers to enable them to absorb the market’s need for banking products and development requirements.
Just as a reminder, the decision to raise banks' capital to enable them to operate outside the Window platform faced difficulty in implementation due to the banks' inability to finance the increase, and
therefore there is no solution without merger.
https://alsabaah.iq/92977-.html
Economical 03/06/2024
Yasser Al-Metwally
The curse of the dollar continues to haunt the performance of banks and cause noise and chaos in the way of their activities as long as the banks rely for their continuity on buying and selling the dollar only without practicing the banking products for which they were established.
The dollar weapon remains famous to the banks because it is their currency, and
the treasury has the right to act by preventing or allowing dealing in it.
Therefore, in such a case, it is linked to political factors sometimes and real technical factors at other times, due to the
lack of experience or
failure to follow or implement the standards it requires,
which exposes banks to prohibition penalties and the inability to get rid of them.
Therefore, banks must
leave their dependence entirely on the dollar and
return to banking activities and products
that enable them to continue in the financial market and labor market.
It must be noted that there is no provision in the law establishing banks that allows them to engage in the activity of buying and selling the dollar, as
it is exclusively an activity of banking institutions.
What is the challenge that prevents our banks from wanting to merge?
There is a truth that cannot be overlooked and requires frankness and openness.
I present this opinion knowing that it does not please or may bother some people,
but if we delve deeper into the results that will be achieved in the future, we will find that
our goal is for the benefit of the banking sector so that it continues despite all the challenges.
One of the most important of these challenges is the lack of conviction of the owners to give up the bureaucracy of management and control.
This culture is
prevalent and the
reason is the non-enforcement of the banking governance law, which separates the responsibilities of the owners from the executive management of the banks and often causes a decline in the performance of the banks.
Here we note, through a review of the most important news of the financial market and banks, especially in our regional environment, specifically the Gulf market, that
we hear and read that a merger has taken place between two or three of the largest well-known banks in their countries with the aim of strengthening financial capabilities and taking over activities related to the development of banking work and competing with banks in what... Among them are several examples that can be viewed. On Gulf electronic banking websites.
The culture of merger is an indicator of the level of awareness of the owners and beneficiaries of this merger to achieve profits and the stability of the continuation of banks in the financial market.
For this reason, we believe that any solution to the problem of our banks in the face of seemingly endless sanctions will include all banks for the reasons we mentioned without resorting to mergers to strengthen financial centers to enable them to absorb the market’s need for banking products and development requirements.
Just as a reminder, the decision to raise banks' capital to enable them to operate outside the Window platform faced difficulty in implementation due to the banks' inability to finance the increase, and
therefore there is no solution without merger.
https://alsabaah.iq/92977-.html
