Alnasiri must reconsider the structure of funding
BAGHDAD - Shokran Fatlawi
Confirmed an expert in banking affairs need to develop a proactive plan to prevent the bankruptcy and the collapse of some banks that would sustain the banking wheel under the current circumstances and using tools for new applications monetary policy mechanisms.
He noted consultant Baghdad Economic Forum Alnasiri Samir Abbas in his speech for the «morning», to the importance of amending banking legislation governing the banking work for the advancement of the services provided to the public beneficiaries.
He hinted the need to reconsider the instructions and implementing regulations and guidance on application of monetary policy as well as a proactive regulatory system for accurate monitoring of implementation in relation to the external switch, in particular, auctions currency which is overseen by the central bank and the development of new mechanisms for external conversion and documentary credits, as well as study the possibility of leaving the auction currency and find a substitute for it, to control the dinar exchange rate against foreign currencies.
And Alnasiri suggested that the issuance of Small and Medium Companies Act and Minor to help create jobs and reduce high unemployment, which exceeded 28 percent and the issuance of the Deposit Insurance Act, the credit guarantee loans and establish a professional corporate rates in order to contribute to the economic and social development plans and poverty reduction ratios.
He continued, in spite of the central bank initiative firing Strutijeth for the years 2016-2020, to achieve financial stability and development of the banking system according to the points of new mechanisms of action, but that does not prevent the central do set priorities through cooperation with the Ministry of Finance analysis of the current financial situation and is expected to banks for 2016 and determine the need actual liquidity to sustain cash trading in the Iraqi market and stimulate the economic cycle in all areas.
Move the economic cycle
Sees Alnasiri to activate the financing of small and medium-sized private enterprises is a target socially and economically a special urgency to have the Iraqi Central Bank the role of supervisory and regulatory effectively the priority, as well as the development of initiatives and activating and expanding and doubling the allocations to 10 trillion dinars.
He noted that the current bank financing riddled with obstacles and structural failures, pointing to the importance of increasing the total credit and financing from banks and activate their contribution to the diversification of the various aspects of investment and reconstruction and advancing the process of development and move the economic cycle in the country.
Adoption of pre-emptive censorship
He also suggested activating the role of state banks and specialized banks and private banks to provide soft loans for the national private sector, as well as finding solutions to the problems of tax accumulated and the benefits resulting from the owners of the stalled projects for production solutions is accompanied by the development of short and medium-term fiscal policy depends Proactive control, audit and evaluation to be coordinated constant between fiscal and monetary policies and the development of operational mechanisms in this area.
Securing legal requirements
Alnasiri promised to secure the legal and technical requirements for twinning widespread among government banks and private banks on the one hand and between the international banks on the other hand, a target evolutionarily to the payments system, modernization and regulation of the financial and monetary trading processes according to the latest modern electronic banking systems applied in the countries of the world accompanied by reviewing and evaluating and re classification of banks according to the efficiency of the performance standards and the adoption of activity based on the international standards in the process of review and evaluation accredited impartial international accounting institutions and under the supervision of the Central Bank.
He concluded Alnasiri his speech by referring to the importance of the central bank to prepare an analytical study to review the reality of banks in the light of the financial results for 2015 and to take critical decisions Bhikltha and merging small size and weak banking activity with large and discreet banks with a view to the development of the private banking sector, such that the banking merger specific foundations of and means to address the problems and constraints of working with the banking sector and move it from the role of banking to the developmental role.