The reasons for the lack of liquidity in some private banks and the Central Bank 's role in supporting

2016/10/05 | 13:50
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The access to the efforts of the central bank in the supervision and control and support the banking sector and the national economy requires that the specialists and members of the House of Representatives and media economist field visits to by officials at the bank and see in detail the policies and procedures and contexts development adopted in support of the banking sector and the national economy. Where the bank has taken numerous resolutions helped the government in attempts to overcome the financial and economic crisis and to achieve the goals enshrined in the law No. 56 of 2004 without affecting its independence and its decisions in the banking support is a resolution to give a bank for a limited period and that the goal of the resolution is to rehabilitate these banks and bring it back to the work of sound banking, and restore confidence between them and the public, and securing liquidity have to enable it to perform its obligations towards Zubayn and through a review of analytical decision of the central bank noted that there are two reasons behind the lack of liquidity for these banks included in the resolution are only two: the lack of boardroom governance and interference in the duties of the executive management, and violation of some banks to the instructions Alaytmanah issued by the Central Bank, or affected by the security conditions and the economic crisis and unsustainable damage beyond its control because of the closure of its branches in the hot governorates, which got terrorist operations and halt its Almsrvih.othmlha physical damage and real estate -tertpt owed by customers debt ranged between 100-50 billion dinars two years ago and did not unable to retrieve from the banks, which has become a debt that can not be obtained in accordance with the indicative list Add to that the banks faced major difficulties in the implementation of judicial decisions because of the threats posed to the debtors.

-akabbal Customers to withdraw their deposits from banks at higher rates than normal rates, and not the filing of any new funds, which led to a decline in liquidity in these banks to the minimal requirements of the Central Bank and became cash in coffers section of the banks was minimal.

Because of the economic recession in the country's financial crisis stifling share prices in the trading market in the Iraq Stock Exchange and the arrival of the shares of these banks decreased to less than the nominal share price by 85 percent.

The responsibility of supervision and control and the development of the banking business and the application of monetary policy is the responsibility of the central bank.

This Mai PEOPLE him Haleaobaltenseeq with the Association of private banks with the help of these banks and rehabilitated by the central bank to re-examine and evaluate the banks that gave it for a period of three months from its commitment to implement the central bank's decision and make sure they all measures rehabilitative and corrective taken to overcome its current state, and this is the adoption of analysis indicators standards activity for the year 2016 up to 309.

In light of the evaluation results of the eight banks are classified into three categories: Category who was able to rehabilitate its current status and can stand up and practice of banking work well in terms of liquidity, operation and investment of funds and the exercise of deposits and withdrawals and a good rate.

Another class who managed the provisions of executing the decision of the central bank, but need financial and administrative support technician in order to continue rehabilitation.

This requires the help of the Central Bank.

The third class, who can not perform the qualification requirements must decide according to the law in force banks and carry out financial and administrative restructuring of the target banks and determine Manpower Professional and administrative measures for the management of the bank and improve the efficiency of the performance of banks requires adherence to the instructions of the Central Bank of candidates for the Board of Directors and Managing Director of the leadership and jobs that The central bank intervenes to nominate directors commissioners, advisers and experts of the executive management of these banks and ensure the availability of qualified and experienced professional executive management of the bank.

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