December 25 2010Invitation of the banking sector following the demands of governance
Prompted a study by an academic and a financial expert and an Iraqi bank interest in the banking sector, both public and private sectors deal with the impact of corporate governance in addressing the risks due to bad debts.
The study added to the negative consequences of the mortgage crisis that devastated the economies of all the State mid-year 2007, which affected the value of the assets belonging to the States.These effects prompted the banks to take precautionary measures (proactive), and it truncates the portion of their profits and put them under field assignments to face bad debts.
This suggests, Dr. Sadiq Rashid university professor and a member of the International Union of Arab Bankers His study referred to above to the banks to deduct a large percentage of its net profit reflected negatively on the most important gains on the resulting decline in profits distributed among the shareholders also decreased market value of the stock prices of these banks, to varying degrees and according to Dr. Shammari during his presentation of the study to the (economic morning) that found most of the banks in the import of loans granted to make credit risk rises and this increase results from the inability of the other party to fulfill its obligations, so the debt has become loans unproductive and caused Ptothiratha negative impact on the liquidity of these banks, resources and Credit worthiness and reputation.
He says since the main objective for the management of banks is the development and the development of various economic sectors in addition to maximizing the market value of the shares shall be saved from the above that the more increased revenues increased risk and on this basis increased Shammari said: followed the departments banking policies are conservative, some offensive and some of them follow a moderate policy in management of their investments in any asset management.
Said Dr. Sadiq, replying to a question by the (morning) on the measures required to avoid the mistakes that the banks to formulate Strutijetha to achieve returns to him much less risk and this requires that decisions are financial players, whether investment decisions or funding decisions and to maximize the market value of the Bank and to achieve this must harmonization of liquidity, profitability and liquidity on the administration to provide adequate and appropriate for the Bank to meet the financial obligations which the bank paid on time.
It goes on to say Shammari and banks to be able to avoid the risk of bankruptcy and therefore Mkhataralciolp them to adopt a rational system of governance of the system through which the management and regulation and control of institutions to ensure the functioning of the banking sector.He warned against excessive measures taken by banks to face the defaulting debt because it will leave a negative impact in the performance of these banks and the performance of the economy.
He stressed the need to empower banks by the application of sound policy and efficient to reduce risk and increase governance portfolio of lending through the availability of a suitable climate for risk management and proper procedures to grant credit, and maintain the process measurement and management and proper control of credit and to provide adequate controls to credit risk and that there is a vital and important role of the observers (Banks Central) in the risk assessment of these procedures.
He pointed out that the Basel Committee on Banking Supervision has developed important principles at the beginning of its inception in 1988, where she focused on credit risk.
Prompted a study by an academic and a financial expert and an Iraqi bank interest in the banking sector, both public and private sectors deal with the impact of corporate governance in addressing the risks due to bad debts.
The study added to the negative consequences of the mortgage crisis that devastated the economies of all the State mid-year 2007, which affected the value of the assets belonging to the States.These effects prompted the banks to take precautionary measures (proactive), and it truncates the portion of their profits and put them under field assignments to face bad debts.
This suggests, Dr. Sadiq Rashid university professor and a member of the International Union of Arab Bankers His study referred to above to the banks to deduct a large percentage of its net profit reflected negatively on the most important gains on the resulting decline in profits distributed among the shareholders also decreased market value of the stock prices of these banks, to varying degrees and according to Dr. Shammari during his presentation of the study to the (economic morning) that found most of the banks in the import of loans granted to make credit risk rises and this increase results from the inability of the other party to fulfill its obligations, so the debt has become loans unproductive and caused Ptothiratha negative impact on the liquidity of these banks, resources and Credit worthiness and reputation.
He says since the main objective for the management of banks is the development and the development of various economic sectors in addition to maximizing the market value of the shares shall be saved from the above that the more increased revenues increased risk and on this basis increased Shammari said: followed the departments banking policies are conservative, some offensive and some of them follow a moderate policy in management of their investments in any asset management.
Said Dr. Sadiq, replying to a question by the (morning) on the measures required to avoid the mistakes that the banks to formulate Strutijetha to achieve returns to him much less risk and this requires that decisions are financial players, whether investment decisions or funding decisions and to maximize the market value of the Bank and to achieve this must harmonization of liquidity, profitability and liquidity on the administration to provide adequate and appropriate for the Bank to meet the financial obligations which the bank paid on time.
It goes on to say Shammari and banks to be able to avoid the risk of bankruptcy and therefore Mkhataralciolp them to adopt a rational system of governance of the system through which the management and regulation and control of institutions to ensure the functioning of the banking sector.He warned against excessive measures taken by banks to face the defaulting debt because it will leave a negative impact in the performance of these banks and the performance of the economy.
He stressed the need to empower banks by the application of sound policy and efficient to reduce risk and increase governance portfolio of lending through the availability of a suitable climate for risk management and proper procedures to grant credit, and maintain the process measurement and management and proper control of credit and to provide adequate controls to credit risk and that there is a vital and important role of the observers (Banks Central) in the risk assessment of these procedures.
He pointed out that the Basel Committee on Banking Supervision has developed important principles at the beginning of its inception in 1988, where she focused on credit risk.
On the possibility of the opposite of this experience and its consequences for Iraqi banks and the face of these challenges, "said Dr...Sadiq al-Shimari: banks are required to develop a common database for its customers across the country in order to facilitate the process of assessing the solvency of customers by rating agencies.
He stressed the need to develop the control system using the CAMELS and on b (capital adequacy, asset quality, management of successful, adequate returns and the bank's ability to optimize and increase, sufficient liquidity, control fluctuations in interest rates any systems provide sensitive market risk. And recommends Shammari the need to adopt Banking on early warning system for any situation negative in terms of customers defaulting on payment to inform the bank in accordance with the application of the principles of the banks, and work to modernize and develop the bylaws for the banks to be able to study the financial positions of customers seeking loans and follow up their activities and knowledge purposes granted for it loans.
And calls on banks to adopt strategies to avoid giving special credit or lending to customers with high-risk and commitment Bank regulations guidance issued by the Central Bank of Iraq and the adoption of standards of the Basel Convention.
Shammari said the need to intensify surveillance by the central bank and firm policies regarding the management of liquidity, profitability, credit risk management.And management of capital adequacy as well as the creation of bank personnel through training programs to enable them to control the activities of different banks. We find that the study presented by Dr. Sadik-Shammari through (economic morning) but came to contribute to the development of the banking system to contribute to the national economy.
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Shammari said the need to intensify surveillance by the central bank and firm policies regarding the management of liquidity, profitability, credit risk management.And management of capital adequacy as well as the creation of bank personnel through training programs to enable them to control the activities of different banks. We find that the study presented by Dr. Sadik-Shammari through (economic morning) but came to contribute to the development of the banking system to contribute to the national economy.
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