WELCOME TO BONDLADYS CORNER...WE CARRY ON HER CUSTOM OF MAKING THIS SITE YOUR 24 HOUR A DAY IRAQ NEWS ARTICLE SOURCE

THANK YOU FOR YOUR CONTINUED SUPPORT OF OUR LADY.


You are not connected. Please login or register

New classifications of Iraqi banks arouse the ire of specialists ... and calls not to favor parties affiliated with banks

Go down  Message [Page 1 of 1]

ikea


MEMBER
MEMBER
https://almasalah.com/ar/news/198804/تصنيفات-جديدة-للبنوك-العراقية-تثير-حفيظة-المختصين-ودعوات-الى-عدم-محاباة-المصارف-التابعة-للأحزاب
2020/10/10 12:00    The number of readings is 1670    Section: File and Analysis

New classifications of Iraqi banks arouse the ire of specialists ... and calls not to favor parties affiliated with banks

Baghdad / Al-Masala:
The decision to review the classifications, bank evaluations and the distribution of auction shares for dollars according to the new evaluation raises the controversy that the new classifications are local and not international, while most of the banks in Iraq are small, whether with their capital or their management of banking operations, while others considered that the revaluation For banks, a short period of time raises doubts.

Abdul Rahman Al-Mashhadani, a professor of political economy at the Iraqi University, said in an interview followed by Al-Masalla on Al-Sumaria TV that the bank had previously set standards for classification and evaluation of banks in 2016 for a period of three years on the basis of applying international banking standards by studying the status of banks and their data to come up with a classification for them.

This did not include all banks, as a group of them was excluded, but we were surprised today by the new governor of the Central Bank to take a decision to re-classify these banks within one week, which raises more than a question mark.

Al-Mashhadani continues that the process of re-evaluation of these banks at the present time, and according to what I received from information, is an inventory of dealing with a group of banks that have a lot of confusion.

He added that the classification mechanism used (I, B, C) is not clear and does not approach international classifications, and there is no disclosure in the local classification standards, adding that the central bank was supposed to follow the example of international central banks by setting international standards for evaluation and classification so that banks know their place on The level of the world, not to follow a classification of your own, which will not constitute anything on the map of global banks.

For her part, the economic expert, Salam Sumaisem, demanded in an interview followed by the obelisk to know what criteria are used for re-evaluation and to know exactly why the re-evaluation is done," indicating that

"the evaluation in the past was done on the basis of the size of the capital, the expansion of the bank and the volume of transactions carried out by the bank.

Sumaisem points out that the purpose announced regarding the evaluation is to reset the issues because everyone is heading to the issue of the window for selling the currency, and therefore the revaluation comes to consider the feasibility of the auction and the shares granted to the banks, asking the bank to "ensure transparency, governance and standards that it will adopt to return Evaluation.

In turn, the economist Dergham Muhammad Ali, in an interview followed by Al-Masalla, sees that Iraq does not need this number of private banks, especially as they do not contribute to development and do not practice banking in most of them.

He stresses that the evaluation step and the classification of banks, if carried out correctly, without favoritism for the party-owned banks, is positive because the banks now live on auction only.

In a press statement, Representative Alia Nassif considered that it is regrettable that the bank classification mechanism came upside down, as it placed limited activity banks in the highest classification, and multi-activity banks that contributed to development and investments in the lower classification.

She added that this issue is not easy and is not limited to being a mere classification, but rather affects the economy directly in terms of granting confidence to ineffective banks at the expense of active and influential banks in the investment movement.

In a move described as "quick", the new central bank governor, in the first week of taking office, held a meeting of the bank’s board of directors to take a decision to reconsider the banks’ valuations and distribute the auction shares for the dollar according to the new assessment.

The Central Bank of Iraq began at the end of 2016 by adopting specific weighting criteria related to the participation of banks in the window of sale of foreign currency (dollars), by evaluating and classifying them into three categories, namely A, B and C.

Follow the obelisk

Back to top  Message [Page 1 of 1]

Permissions in this forum:
You cannot reply to topics in this forum