11/7/2016 12:00 am
Banking integration is a means of discreet solvency of banks and is also an important means for the principles of sound governance and good governance.
Global experiences in developed countries pursued this method any banking merger not because its fiscal deficit but discreet competitive strength in the market and through the exchange of opinions and utilize modern technology available to complement the quorum.
My eye caught the news I read on one site that economic first Gulf Bank» and «» Abu Dhabi» have agreed to merge, and there is an expectation in the possibility of integration «commercial bank of Dubai» with «UNB» question is that these banks have financial solvency in order to continue to provide services in the financial market?
The answer is absolutely not because she's from prestigious banks but found the merger of great importance in achieving strong competition with international banks and local and even Bank policy.
I find this important message and transparent integration of the importance of deepening our integration culture here in Iraq, cite this example because our banks not convinced merger to inadequate understanding of the process of sustainability banking market.
I think that the integration approach advocated by the Central Bank is most important in applications here in Iraq to save banks that thrive on competition, some collapsed leading to impose their wills to bankruptcy.
Find here the duty of Association of banks play an important role for translating the above message through a pilot program in cooperation with the Central Bank.
And we have to try convince banks merger between this method and the experiment is better than a proof and then we will grope for interest and we'll continue to see results.
Perhaps the reason for this choice is poor banking management on the one hand and clung to some of the boardroom walk things according to go unfortunately and poor solvency has so you won't be able to raise their capital as required by the stage and the mismanagement of risk and liquidity shortage that caused the collapse.
To solve the problem of troubled banks lie must integrate to remain hesitant despite all attempts.