The recommendations of the government and the formation of a parliamentary supreme body of the banking reform

2/24/2014 0:00

BAGHDAD - Farah pumice

With the aim of establishing a sound banking supports and contributes to the economic growth in Iraq , called on the Finance Committee in the House of Representatives after consultations with government agencies and private to the formation of a supreme body to reform the banking environment with finding a legislative banking allows banks to develop in line with the current and future developments .

The report , prepared by the Finance Committee on the requirements for reform of the banking system in Iraq and submitted to the Council of Ministers and the competent authorities 0.24 recommendation for the development of the reality of public and private banks .

Banking Supervision

According to the report , obtained by the "morning" , the Committee urged the formation of a body to oversee the banking supervision on the banking and financial institutions will be linked to the House of Representatives , with the amendment of the law banks present to ensure the use of definitions and expressions legal legal language clear , and modify the provisions of the Banking Act No. 94 of 2004 in line with the nature of banking activity , specifically materials that have prevented banks from exercising investment activities , which are at the heart of its work , as well as reconsidering the amendment of laws related to monetary policy as law firms , securities and investment.

The Finance Committee, chaired by MP Haider al-Abadi has recently held a seminar with the participation of a number of managers of state-owned banks , experts and specialists in the banking sector and representatives of the Iraqi Central Bank to view the final report of the Committee on the requirements of the reform of the banking system in Iraq , as Abadi said that the Finance Committee has embarked on the preparation of the report for the past three years after the use of international experts and interested in the work of the banks of the private and public sectors .

Company to guarantee deposits

The Committee also recommended to its report setting up a company to guarantee deposits in private banks as well as setting up a company to ensure the credits and the creation of a central fund to finance private banks to cover the financing of development projects in accordance with the terms and conditions of a special partnership between the government and private banks , as well as the enactment of Islamic banking with giving the right of Islamic banks to own movable and immovable property and sell it and invest and hire and leasing , including the reclamation of land owned and leased and prepared for agriculture , industry, tourism and housing.

He called the report ( which came with 76 pages) to the importance of encouraging banks to open more branches and offices of banking in the various governorates of Iraq to increase density banking , and put forward a plan to achieve mergers between private banks to create a banking units large size can occupy space is important from the banking business local .




Specialized banks

The Committee stressed the need to activate the role of government banks specialized ( industrial, agricultural and real estate ) and the transfer of functions from banks inclusive to banks specialized on according to the goals it was created to accelerate the development process , and activating the work of private banks to employ the liquidity of large financial in the provision of credit and increasing their contribution to the development of economic sectors , and increasing amounts of credit to the private sector banks and allow them to accept deposits from the government and the acceptance of instruments drawn by the government departments .

To ensure keep up with developments, the report called for the introduction of modern means of destruction and banking principles like credit cards and modernization of the banking business in line with technological advances and global banks connect to a single network makes it easy to drag and filing.

The Committee also recommended to facilitate the procedures for the opening of branches of foreign banks and remove the complexities of government departments , and activating the role of the Union and the Association of Iraqi banks , with the diversification of products and services for the banking sector , develop and create new products, and promote the concept of ( quality management ) and integrated into the banking operations represented by the planning , implementation and ongoing development of Management Systems quality of work according to international standards .

Training centers

He urged the report also to build a broad base of leaders qualified and trained capable leadership and management of the banks in the directions that ensure their growth and development and its interaction with the shifts and developments in the banking industry, modern , in addition to the development of training centers banking , including working on the development of capabilities banking in Iraq and to provide research and studies can be for all banks the right to take advantage of these centers to build the capacity of employees or who wish to work in banks in both the public and private sectors.

order to access the world , stressed the importance of the application of best practices and international standards in order to achieve greater integration between the economy and reform at all levels through the application of Basel 1-2-3 and work to develop legislation to be applied .


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