Our banks and forecasts in 2020
Financial and banking advisor, Samir Al-Nassery
On the occasion of the end of the year 2019, and in view of the special and new circumstances that our beloved country is going through due to the widespread popular movement and legitimate demands for political and economic change and reform,
and because our banks are the first major link in the national economy, we must clarify by analyzing and evaluating the business results of banks 2018 and 2019 that they have faced challenges from the work environment other than Stable and attainment of bad debts more than (6) trillion dinars,
the price of shares traded on the Iraq Stock Exchange decreased by (80%) and the decrease in liquidity of some banks to the minimum limits established by the Central Bank and the decline in revenues The accruals, deposits, and deficiencies in the legislative environment, the determinants of instructions that regulate the economic process, tax and customs laws and instructions, their declining financing activities and their weak contribution to reconstruction, investment and development.
It must be noted here that our banks confirmed their sobriety and strengthened the public's confidence in them during the current popular movement and the continuation of their daily activities and work despite administrative, logistical and technical difficulties, which contributed effectively to implementing the central bank policy in achieving stability in the exchange rate and perpetuating internal and external banking operations, which strengthened International confidence in our international banking dealings,
and this is evident when comparing the state of our banks with other countries that witness the same conditions and the same popular movement as happened in Lebanon, for example, and this confirms that our banks are heading in the right direction.
Therefore, it requires that it accomplish its plans for the year 2020 in the light of analyzing the results of its activities and activities in the light of the current conditions and expectations in 2020 after the formation of the new interim government and the requirements of the new situation and in accordance with the central and subsidiary central bank strategy goals in the year 2020 with a focus on contributing to the implementation of the strategic banking projects that it plans
And put it and set its goals the Central Bank, which are 21 technical, financing and administrative projects and come up with policies and procedures according to their actual needs in the sustainability of their provision of their banking products and enhance their freedoms from restoring confidence in the banking sector and that these etc. are prepared
I coordinate with the specialized departments of the Central Bank by holding working meetings and diagnostic and analytical discussions organized by the Banking Control Department in cooperation with the Iraqi Private Banking Association and setting policies and procedures to meet the major challenges facing banks and focus on re-reviewing, evaluating and amending their policies and procedures and developing them towards their establishment and under the supervision of the Central Bank to develop their plans Attracting deposits, granting credit and banking facilities, increasing the percentage of financial inclusion and turning to the real banking business and expanding the provision of modern systems, programs and technologies in the field of electronic payment Y.
The completion of banks' plans for the year 2020 requires them to take quick steps, which is the transition of the Iraqi banking sector to a discreet and developed economic sector and is committed to international regulations, rules and standards for compliance, combating money laundering, financial reporting and risk management,
and thus the transition from the role of banking to the development role and contributing to the revitalization of the economic cycle by activating and supporting financing Small and medium enterprises and large development projects through which a solid national economy is achieved and sustainable development ultimately serves the Iraqi people and their aspirations for a better life.
This requires that each bank have a specific plan for the year 2020 in the areas of technical development and work in accordance with international standards to achieve financial inclusion, attract deposits, work on capacity-building, training and qualify human resources, achieve the goal of investing in human capital
and develop the structural structure of the banking sector in addition to the banks’ interest in applying Financial stability criteria, which are financial safety indicators such as the ratio of the capital adequacy ratio, the liquidity ratio, the profitability ratio as the ratio of profit and net profit to capital, the ratio of the return on the assets, the ratio of the return on the shareholders’ equity, the ratio of the cost of activity and Financial lever and employment rate funds in addition to the adoption of indicators to measure the efficiency of performance and the development of units for statistics, studies and financial analysis to mark monthly, quarterly and annual deviations in the plans drawn.
This needs the government and the central bank to support banks and enable them to continue banking activity and implement the decisions of the Council of Ministers and the Economic Affairs Committee related to the revitalization of banking work, especially in the field of credit and bank financing and bank loans and facilities and give an essential role to private banks and their involvement in central economic decision-making.
Number of views 4 Add Date 12/19/2019