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Academic: banks specific traditional unproductive activities
11/06/2012 12:00 am
Confirmed low density bank in Iraq
BAGHDAD - Hussein Tgb Tamimi
experts say the private banking sector to identify the work of banks due to the lack of development of banking products offered by banks at the very least, especially as the international banks now offer more than (100) product to its customers and technologies for making it easy to much of the speed of completion of banking service provided to the customer.
academic specialist in banking, Dr. Sadik Al Shammari said: banking reality discriminate control traditional activities of the granting of loans and advances, as you can not make new products and sophisticated suit tastes customer and fit reality, especially in the finance operations operational and financing leases which led to the non-crystallized culture banking clear and sophisticated, pointing out that the density bank of the banking system in Iraq is still Mnkhvdho indicate the small number of bank branches that cover the needs and requirements of the public by the indicators and international standards adopted in this, which requires it to reconsider the plan open branches and offices banking in the country to be a branch at least one per 10000 inhabitants and is an ambitious plan and target.
said Shammari during his speech at an economic seminar held recently to poor and limited funding role investment practiced by the banking system, especially in the activities Islamic banking there is no special legislation for Islamic Banks regulates its business and its activities, and the limited adoption of modern technologies and IT in their activities as a system and private banks to government and this is what created additional costs in the banking systems of SOA, eg limited ATM withdrawals from any branch and inquire about balances and transfers, note that there are plans submitted to the Central Bank using mobile devices to seek balance, in addition to the lack of support from the monetary authorities to private banks, especially in the granting of government institutions to open accounts with private banks and non-acceptance of instruments issued by private banks and these challenges led to be competition is weak among banks government and private sector and the impact of in other services and acceleration in the provision of advanced services to satisfy customer despite the depth of evolution gave rise banks in Iraq.
and the weak role of the banking system pointed out the importance of keeping up with changes in foreign banks in the light of developments in economic strategies, banking and narratives of globalization and the resulting developments task of the emergence of tools and banking products distinct, pointing to deficiencies in the keeping up of the banking system to changes in laws and international legislation which paved the way for entry into banking activities increased effectiveness and developmental role in the process of capital accumulation.
and pointed out that the lack of legislation banking and private Islamic Banks led to a decline in its developmental role do for activities banking are far from taking interest and increase the degree of concentration banking in the banking system despite the plurality banking.
and on the question of the administration of modern banking confirmed Shammari said the banking sector lacks governance is more necessary than to be a commitment imposed by regulators, being a strategic option has and should be adhered to global banking standards, including capital adequacy standards and financial disclosure and transparency in the financial statements of banks and develop a strategic plan for the development of the technology used in the banking system, according to the capabilities available in addition to the importance of linking the banks. As must develop the infrastructure of the banking sector based on special programs for the training and leadership development scientific where in relation to Palmmazjh and connectivity concept of governance and mechanisms through the establishment of training courses and developmental to increase awareness of accountants basic concepts of governance and the need for awareness by the administrators and board members.
rose, saying: that the reality work requires moving away from the formal system aggravated bureaucracy at work and give flexibility appropriate according to the nature of work and contribute to the development work and achieve superior performance, as well as the use of quantitative methods and programs to learn how to exploit sources of banks Wayne lies the strengths and weaknesses have to facilitate the process of investment resources as required, in addition to working on investment projects profitable and short range and long guarantees for banks liquidity necessary for the functioning actively work through the cash flow for these projects.
Shammari said: should the growing interest in some financial indicators so as not to lose the confidence of the customer for some private banks and try to go about existing resources has including investment cash found with the projects low risk and high short-term in order to be role high revenue from these projects for the purpose of fulfillment of its obligations to depositors.
stressed the need to find a legislative environment banking services through a new legislation for banks, especially to find legislation for Islamic Banks and how windows Islamic line with current developments and future banking system and the development of banking awareness by doing a media campaign to identify the functions of banks and services offered by the public contribute where all banks should also compel banks put reserves sufficient to meet overdue loans repayment and bad investments or for the purposes of enhancing the resilience of their capital, should also encourage banks to provide syndicated loans in order to invest their money and reduce the risks they face and overcome the limits of certain limited by lending and open more branches and banking offices in various provinces to increase the rates of banking density in accordance with the conditions set by the Central Bank of Iraq. He concluded by referring to the importance of control provisions on the performance of banks during follow-up regulatory office of activity by the monetary authority and Note abuses taking place on banking regulations and processed first Powell by approving national standards for classification Alaútmaúa to identify centers Alaútmaúah the bank to protect the funds of banks.
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