Home
D. Saadi: the financial sector needs to support the Central Bank
Topic has been read 53 times
19/01/2012
Invited to take advantage of the World Bank notes thereon
BAGHDAD - Yasser incumbent
He specializes in capital market and a strong economic relations between the aspects of cash and securities markets due to large overlaps in the decisions taken by the monetary authority, including an impact on both sides of supply and demand for securities.
This came in answering a question on the (morning) on the evaluation of the World Bank and the report on the performance of the financial sector, which includes banks and the stock market and insurance.
The head of the Securities Commission d. Abdul Razzaq al-Sa'di is known that the securities in any country is considered the most competitive investment means investment banking, so, any cajole or pressure on the means of investment banking will be reflected more or less on supply and demand for securities and their prices.
He said Saadi that the relationship between monetary policy decisions, securities and their effects are reflected first in interest rates since any change which will increase or decrease profit shares in the economy, pointing out that the setting of interest rates of the monetary policy tools task used for the purpose of economic recovery or fight inflation.
And that when a decision cut interest rates, it makes the investment in securities more profitable than low interest rates, and thus turn the investor to convert his savings in the form of securities rather than bank deposits either in the event of raising the interest rate it is moving towards bank deposits through the sale of shares and that the marginal return is less than the interest rate.
Saadi notes that the credit policy is the other defining the relationship between the central and the Stock Exchange, where central banks as economic conditions to encourage the reduction or credit, in the case of inflation often turn central to the adoption of conservative credit policy.
He added, in such a case, it means there is a lack of liquidity and this reduces the demand for securities and increase the display, and thus exposed their prices to decline and vice versa so When his followers credit policy encouraging the demand for the securities, leading to an improvement in prices.
The third factor that determines the relationship goes on to talk Saadi said of the banks, where it is known that central banks set the general framework of the policy of the banks in their countries.
And stresses that the central bank to adopt an open vision will allow the banks a positive impact on economic activity by allowing them to management and operation of investment funds as well as coordination among themselves for the management of syndicated loans making it easier to be oriented to the management holding company.
Saadi, promised measures to help stimulate the stock market, pointing out that interference in the activities of banks, including the disposition of the deposit money that will make the role of negative and deflationary in the country's economy.
He concluded by saying that to find the performance of banks vulnerable to criticism by economists and non-cached and the reason is due to the narrow view of these and narrow them down by the tough decisions issued against them.
He called on the Securities Commission d. Abdul Razzaq Saadi to benefit from the recommendations of the report of the International Monetary and observations on the financial sector.
And that the central bank to take these observations together when he took his decision in order to reduce any negative effects on the national economy, stressing the success of the central in many of the decisions and policies, but urges that relief interventions that hinder the performance of banks.
The International Monetary Fund has expressed in his annual report for the year 2011 many observations on the performance of the financial sector and urged the monetary and fiscal authorities to review its procedures to achieve the required reforms.
[You must be registered and logged in to see this link.]
Topic has been read 53 times
19/01/2012
Invited to take advantage of the World Bank notes thereon
BAGHDAD - Yasser incumbent
He specializes in capital market and a strong economic relations between the aspects of cash and securities markets due to large overlaps in the decisions taken by the monetary authority, including an impact on both sides of supply and demand for securities.
This came in answering a question on the (morning) on the evaluation of the World Bank and the report on the performance of the financial sector, which includes banks and the stock market and insurance.
The head of the Securities Commission d. Abdul Razzaq al-Sa'di is known that the securities in any country is considered the most competitive investment means investment banking, so, any cajole or pressure on the means of investment banking will be reflected more or less on supply and demand for securities and their prices.
He said Saadi that the relationship between monetary policy decisions, securities and their effects are reflected first in interest rates since any change which will increase or decrease profit shares in the economy, pointing out that the setting of interest rates of the monetary policy tools task used for the purpose of economic recovery or fight inflation.
And that when a decision cut interest rates, it makes the investment in securities more profitable than low interest rates, and thus turn the investor to convert his savings in the form of securities rather than bank deposits either in the event of raising the interest rate it is moving towards bank deposits through the sale of shares and that the marginal return is less than the interest rate.
Saadi notes that the credit policy is the other defining the relationship between the central and the Stock Exchange, where central banks as economic conditions to encourage the reduction or credit, in the case of inflation often turn central to the adoption of conservative credit policy.
He added, in such a case, it means there is a lack of liquidity and this reduces the demand for securities and increase the display, and thus exposed their prices to decline and vice versa so When his followers credit policy encouraging the demand for the securities, leading to an improvement in prices.
The third factor that determines the relationship goes on to talk Saadi said of the banks, where it is known that central banks set the general framework of the policy of the banks in their countries.
And stresses that the central bank to adopt an open vision will allow the banks a positive impact on economic activity by allowing them to management and operation of investment funds as well as coordination among themselves for the management of syndicated loans making it easier to be oriented to the management holding company.
Saadi, promised measures to help stimulate the stock market, pointing out that interference in the activities of banks, including the disposition of the deposit money that will make the role of negative and deflationary in the country's economy.
He concluded by saying that to find the performance of banks vulnerable to criticism by economists and non-cached and the reason is due to the narrow view of these and narrow them down by the tough decisions issued against them.
He called on the Securities Commission d. Abdul Razzaq Saadi to benefit from the recommendations of the report of the International Monetary and observations on the financial sector.
And that the central bank to take these observations together when he took his decision in order to reduce any negative effects on the national economy, stressing the success of the central in many of the decisions and policies, but urges that relief interventions that hinder the performance of banks.
The International Monetary Fund has expressed in his annual report for the year 2011 many observations on the performance of the financial sector and urged the monetary and fiscal authorities to review its procedures to achieve the required reforms.
[You must be registered and logged in to see this link.]
