Expert: the adoption of the most advanced banking technology advancement outlets in the banking system

05/25/2013 12:00 AM

Despite the efforts of the Central Bank for the development of payment systems

BAGHDAD - Hussein ثغب of Tamimi


Stressed the financial affairs expert Samir النصيري, the need to review the work of the banking sector in the previous stage before the adoption of methods of banking reform.

He pointed out that a good indicator in the local banking business lies in achieving the total balance of deposits in the Iraqi banking system (42) trillion dinars and a proportion (29 percent) of the total liabilities, an indicator of monetary and financial stability.

He added, "morning" to build a banking sector discreet depends on the profitability of those banks, efficiency and capacity of their capital in the face of circumstances and economic variables, such as liberalization of the financial sector and the change in the course of monetary policy and financial sector development and the evolution of the investment climate, pointing out that there is a contradiction and mobility taking place in front of the task of monetary policy directly and indirectly in the development and strengthening of financial intermediation activities and the strengthening and building the infrastructure bank, فمهام the stability and development of the financial market no less important than the functions of monetary policy to control inflation and provide overall stability of an incubator opportunities for growth and accelerate economic prosperity.

He pointed out that they provide evidence for financial years that the capital of banks in Iraq has grown from 2.9 trillion dinars in 2010 to 3.9 trillion dinars in the year 2011, which is a positive indicator, but it is minimal in front of the requirements of large enterprises, while the proportion of capital companies contribute banking (private banks) to GDP (1.6 percent), which is a small percentage, while the ratio of government banks (0.3 percent ) of GDP in 2011, due to the capital increase of the Rafidain Bank and Rasheed Bank to (300) billion dinars and three specialist banks to (200) billion dinars each.

He said that the structural weaknesses in the banking system lies in the credit away from the router, where a non-directed lending practices to a marked deterioration in the quality of the loan portfolios of banks, which subsequently exacerbated by general economic conditions unfavorable, has resulted in the accumulation of NPLs to limit the ability of banks to perform the functions of mediation by reducing the liquidity available to it and increase the cost of its operations, this case has appeared prominently in civil commercial banks, as well as double the efficiency of payment systems because the applicable clearing system in Iraq is a record system for clearing and is based on the actual transfer of debt instruments and credit on the new method in the examination of these tools and make sure of them, depending on payments systems that are now applied unevenly between the bank and the last, which led to the slow process of settling payments between the banking system as a whole and therefore weak in terms of disclosure and oversight bank statements vary in comprehensiveness and accuracy from one bank to another, which makes it difficult to make a comparison between him and international banks despite the CBI seeking to develop Payments Systems currently has applied and has now National chunked project is the development of new payment systems will be implemented soon.

And ways of confronting challenges to reform the banking sector said النصيري: Despite considerable efforts made by the Monetary Authority and the Ministry of Finance in the banking sector support these banks are still facing major challenges because of the circumstances experienced by the country, as well as the lack of qualified banking Level have weakness in the means of the banking business, as well as disparities in the use of modern technology as a network communications and information systems, the Internet and not to adopt control methods and financial disclosure and accounting for its financial statements, and that the total of these factors can be considered كتحديات in front of banks, which is working hard in cooperation with the central bank to overcome them through compliance with international banking standards, including the standard capital adequacy and financial disclosure of the financial statements of banks and develop a strategic plan for the development of the technology used in the banking system, according to the possibilities available and linking banks and telecommunications network terminals with central bank Iraq, in addition to encouraging banks to establish mutual funds in order to expand the opportunities available to them to invest their deposits.

He pointed to the importance of creating a banking regulatory environment allow for the development of the banking system through new legislation for banks in line with current and future developments in this regard.

And study the idea of ​​creating a society for the task of banks to overcome the difficulties faced by these banks and solve problems arising out of them or between them and others.

As well as encourage banks to make loans in order to invest its funds and reduce the risks faced and overcome the lending limits set out a certain percentage of the bank's capital and reserves set out in the Law of the Central Bank of Iraq. Abyan and the importance of working to encourage banks to open more branches and banking offices in various provinces to increase the density bank in accordance with the conditions set by the Central Bank of Iraq.

With the provisions of monitoring the performance of banks during the follow-up field and the office of its activity by the monetary authority and Note abuses taking place on the instructions banking and processed aphid.

And develop a plan to achieve future mergers between private banks to create large-scale banking units can occupy an important space of the local banking business

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