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Sources: private banks focus on strengthening governance
On: Sun 12/18/2011 8:22
□ Baghdad / follow-term economic
and banks are of a broad program of activities in 2012, and highlighted what is in the promotion of interest in the subject of corporate governance of banks and financial institutions for his role in the promotion of free market economy and the prevention of corruption and mismanagement, especially that of governance are necessary and inherent to financial activity in the world. The London-based Al-Hayat newspaper quoted the Director's Commissioner (the Islamic National Bank) Sadeq Rashid Shammari said: that the interest of banking and financial sector governance stems from the growing role in the economic arena,
Because The use of governance mechanisms optimization, adjust the paths of banks and other financial institutions and direct, so as to ensure them to achieve their goals within the framework of the banking legislation of sound that enhance opportunities for implementing programs.
He pointed out that Iraqi banks current are governed by the need for methods and formulas to avoid the dangers of credit in a manner sound and commitment to the Basel II standards, which focused on attention to the subject of governance and implementation mechanisms, considering that the availability of banking system sound and healthy is essential for the health of the economy.
He Shammari to read the reality of Iraqi banks show that the obstacles to its work lies in the lack of commitment to rules of governance and its mechanisms as evidence of the work of financial reform and institutional spared from any form of corruption, prompting the Association of Banks to compel the sector to take corrective measures especially the presence of specialized units take responsibility for follow-up mechanisms of governance and implementation, with emphasis on the study of the culture of governance and their impact on banking performance and address the risks in the credit decision.
, it hoped to respond to banking sources of banks and financial institutions to the broad requirements of the program developed by the Association, under commitment control governance after notice by the lack of knowledge and its mechanisms of many banks, as well as the absence of the strategic dimension of management when you go to avoid the risk banking. Noted these sources twice the size of participating in many activities organized by the Association of performance-related banking, and how to avoid exposure, making it the focus over the next year, the need to keep up with calls to the importance of governance in the banking and financial sectors, and their role in attracting sources of funding for local and foreign promote growth and supports its presence in the market competition and investment, and increasing concern for the disclosure and transparency and fighting corruption.
so on, kept the Ministry of Finance on the instructions which had been circulated to the ministries and government departments not to open accounts in private banks.
and showed a document obtained by the independent press (Iba) in the image them to the Economic Committee in the Council of Ministers issued a directive to the Ministry of Finance of 04.06.2009 on the support of private banks, but the Finance Ministry did not take any action with respect to that yet. The document, which is an official letter addressed by the Office of the President of the Economic Commission then Deputy Prime Minister Barham Saleh to the Office of the Minister of Finance that the Committee had requested to allow the ministries to open accounts with private banks for the purpose of opening credits and increase the amount of two million to $ 5 million.
The Committee also called economic urged the self-financing companies to deposit and opening bank accounts in private banks.
On the other hand and directed the Commission and the Ministry of Finance to establish the Bank of mixed contributes the government and private banks and branches of foreign banks with a capital of a suitable, depending founded modern banking.
Even after a long time on these directives, but the Ministry of Finance is still far from their application, in a time when private banks from dealing official with it, despite the advice shown by experts of the need to support.
In this side said an adviser to Prime Minister for Economic Affairs Abdullah Al-Hussein Anbuge in a press statement that the phase transition towards a market economy requires a private sector a more active role and be directed to the economy of the country, adding that so went require a banking system capable of mobilizing financial savings will be huge waiting to Iraq, especially that it is entering a phase of economic growth and broad, as well as follow-up economic projects in all their stand at the economic feasibility realized from them.
The Anbuge in his statement that the process of economic reform requires that the head of government banks towards lending to private banks, to expand its work and services that must be provided to the local economy.
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