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Analytical reading of the Central Bank's efforts to support private banks

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Analytical reading of the Central Bank's efforts to support private banks

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To see the Central Bank's efforts in supervision and control and support the banking sector and the national economy requires that professionals and members of the House of representatives and professionals SEO field visits officials at the Bank and in detail on policies and procedures and developmental contexts adopted in support of the banking sector and the national economy,

where the World Bank has taken several decisions the Government helped in attempts to overcome the financial and economic crisis and achieve the objectives contained in its 56 year 2004 without affecting his independence and resolutions in support of banks is the award given Private banks with problems and a severe lack of liquidity for three months.

The aim of the resolution is to rehabilitate them and return them to the banking business, and restore confidence between them and the public, and ensure its liquidity to enable them to discharge their obligations towards their patrons through an analytical review of the Central Bank's decision Note:

1. There are two reasons behind the reduced liquidity for these banks covered by resolution no third are: Planning Administration (Board of Directors) in executive management duties and leaving some banks alaitmanih instructions issued by the Central Bank, or be affected by the economic crisis and security conditions incurred damage beyond provincial branches were closed and hot that got in terrorist operations and cease its banking and property damage

2. customer owes debts ranging from (100.50) billion dinars two years ago banks could not retrieve which became of debt that cannot be obtained in accordance with the indicative list, adding that banks faced great difficulties in implementing judicial decisions because of threats from debtors.

3. customers to withdraw their deposits from banks at rates higher than normal rates, do not upload any new funds which led to declining liquidity in these banks to the minimum established by the Central Bank and became cash in banks Department coffers to a minimum.

4. because of paragraph (3) above the banks ' deposits fell by 30-70%, forcing these banks to stop credit and investment activity.

5. some banks stopped dealing with this messaging banks, for example (Commerz Bank) which affected that much influence on its opening credits and issuing remittances

6. the country's economic recession and severe financial crisis, stock prices in the secondary market in Iraq market for securities these banks shares access to less than the nominal share price (85) percent.

7. weak banking departments at some of these banks that were unable to overcome their crises with wisdom and prudence as in some good banks and which still works good and many are sedate..

Responsibility for supervision and control and banking development and application of monetary policy is the responsibility of the Central Bank. This is what it haliaobaltnsik with the Association of private banks with the help of these banks and their rehabilitation in accordance with the following:

1. the Central Bank to reconsider and assess banks that give her for three months from its commitment to implement the decision of the Central Bank and make sure its being taken all qualifying and corrective actions to overcome its current state, the adoption of criteria for analysing the activity indicators for 2016 until 30/9.

In the light of the evaluation results eight banks are classified into three categories:

category which could rehabilitate his present situation and can promote and practice the Bank job well in terms of liquidity and diversify and practice of deposits and withdrawals.

And another category that got tnkase the Central Bank's decision but needed administrative and technical and financial support to continue rehabilitation.

This requires the assistance of the Central Bank.

Either the third item that cannot execute qualification requirements you must make the decision according to the banking law in force.

2. the Central Bank support for the second category is the use of the optional or compulsory banking integration in order to achieve successful banking integration requires:

A-data and information in accordance with the principle of disclosure and transparency for all reporting banks bank merger.

B-economic feasibility study and expected results when blending in these studies are evaluated by the Monetary Authority before making a decision.

C carry out financial and administrative structure for the targeted banks before the merger and identifying technical and administrative manpower needed to run the new entity.

Banking mergers if according to the above will check as follows:

-Increase the capacity of the new Bank to activate his activities in all areas, most notably the rise in the capital and income of banking and financial centre.

B-increased net profit which yields increase the value of his shares on the stock exchange and increased deposits and rising number of clients and increase the number of individualize and thus enhance confidence and is the most important thing in the banking business.

C-the new Bank's commitment to fulfilling all his obligations towards the former financial institutions and toward customers.

3. for the purpose of improving the efficiency of banks require adherence to the instructions of the Central Bank of candidates for Board of Directors and Managing Director and leadership positions on the Central Bank to intervene to nominate directors Commissioners and advisers and experts for their executive departments and ensure efficiency and operational expertise to manage the Bank.

4. the Central Bank Board governance and prevent interference of Executive Management owners categorically not stipulated in the law, and the CBI has issued a guide to governance confirms this trend.


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Hits count 180 date added 27/09/2016 13:39 last updated 29/09/2016-12:18 content number 5213

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