Al Nassiri: Central Bank calls to activate stratigith mechanisms to support banks.
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The objectives of monetary policy to achieve economic growth and stability and reduce unemployment and the stability of prices of goods and services and exchange rate stability and improved balance of payments position and achieve these goals through direct and indirect instruments.
In this regard, said the banking expert and member of the International Union of Arab bankers Samir Al Nassiri:» in an interview. Economy news agency that the Central Bank is currently implementing its plan for the next five years to develop its mechanisms, policies and programmes in accordance with the contents of bestratigith for years (2016-2020) and particularly with regard to monetary policy applications and means of supervision and control of the Iraqi banking sector, requires that studied the observations and suggestions of works to address the gap between the State's financial policy and monetary policy Accredited by the Central Bank of Iraq and the requirements to combat inflationary pressures and reduce the current expenditure and coordination of plans and programmes to achieve the Iraqi economy from financial meltdowns.
He urged the Central Bank to restore cash plan and future policies until 2020 with the basic objective of tackling inflation and achieve the planned growth in the banking sector's contribution to GDP.
Al Nassiri suggest activating the Iraqi Central Bank policies for control of monetary policy to support the banking system and review the lending policies and mechanisms of credit risk management in granting credit and loans to SMEs and investment in productive sectors and investment that satisfy a clear cash flow and boost the economic cycle in order to contribute to the economic development Diversification of financial resources of the general budget.
He noted the importance of the Iraqi Central Bank to reconsider studying the possibility of reducing total law cover of deposits at banks and frozen Iraqi Central Bank without investment, indicating that these amounts could invest and benefit from the support of private banks and can expand its activities and look for new banking products also requires mechanisms for lending to banks experiencing severe liquidity crisis due to the economic situation the year that Iraq is going through.
And student development and support and stimulate Iraq market for securities and means and tools that drive toward corporate and market indicator prices consistent production standards, its assets and profits, at least inevitably real shareholder value and prevent speculation detrimental to Iraqi assets not commensurate with the real value and actual.
Al Nassiri preferred the Iraqi Central Bank to reconsider instructions for foreign currency auction and selling process and define the role of banks in the mediation between the customer and the Central Bank, in addition to outlining the responsibility of the Ministry of trade, finance and planning in offences committed by some customers and not just banks liability.
He noted the importance of the establishment of the (Fund) or (portfolio) of certificates of deposit issued by the Banks wishing to address the deterioration of stock prices in Iraq market for securities and adding new investment banking management present to stimulate the investment climate in the market as well as increasing the size of bank deposits, leading to increased investment activities in all economic sectors and thus achieve positive returns for investors, pointing to the boardrooms of banks adopt the strategy of operational risk and implementation of executive management of the Bank to ensure determine operational risk relating to all types of banking products.
And provide a base of information flowing in the Bank and which play an important and key role in establishing and maintaining an effective framework for operational risk management and follow-up of owning banks effective system to identify, measure and monitor operational risks as part of risk management.
He stressed a custom review bad debts according to the indicative list and return additional periods and elasticities for banks to be able to filter these debts, mostly due to prior periods and most debtors have migrated outside Iraq for security reasons beyond their control and that these ratios lead to reduced profits actually realized as a result of subtracting these percentages of net profit and thus affect the activities of investment banks.
Modern course concluded on the restructuring of the banking sector, particularly the banking sector and Government study privatizing some sections and branches and to activate banks expand and diversify their services private banking increased share credit and investment in a balanced manner with their returns Dean to become effective economic growth pillar banks to avoid some banking monopoly and block government activities public institutions and private banks.
Speaking to Al Nassiri concluded economy News Agency by calling for the Central Bank to activate mechanisms to achieve the objective of banking development by re-public confidence in private banks because of the liquidity crisis experienced by some banks.
This requires a reassessment and classify banks in light of the results of their work in 30/6/2016 and remedial and corrective action to save the banks from collapse and to ensure customer deposits to them and also to ensure the rights of shareholders
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