24/01/2012
D. Sadiq Shammari: Governance banks is an urgent need to promote the role of development
Counted an important source of financing of the economic sectors of Baghdad -
Yasser incumbent - Hussein Tgb
paid a lot of banks and financial institutions issue of corporate governance attention Metzaidabad the growing role and the massive expansion of the private sector in economic development and develop the economies of countries.
and the back of this role in the wake of economic collapse and financial crises in countries Many in the nineties of the twentieth century, as well as after the collapse of financial and accounting for many international companies and the subsequent bankruptcy of many banks.
In order to highlight the importance of governance in the performance of the banking sector, we had this meeting with the academic and banking expert Dr.. Sadiq Shammari, who confirmed at the beginning of his speech that the availability of banking system is healthy and well is essential for the economic health of countries.
He said, that the governance of banks means many things to many individuals is a topic important and vital role in the process of providing protection against corruption and the management at the same time promote the values of free market economy to the growth in the number of shareholders in companies and lenders through the mechanisms of governance to achieve the implementation of market values, which is the accountability and transparency and the rule of law and the institution at work, justice and social responsibility towards all users of the «shareholders« employees, customers, society and the property itself.
and on the obligations which called for the use of governance He Shammari to that of the most important reasons that made the eyes are on this style is the explosion of the financial crisis in Southeast Asia in 1997, Mexico and Argentina as a result of a crisis of confidence among business organizations, government, and for companies to access enormous amounts of short-term debt at the same time keen on non-knowledge of the shareholders of these things and hide this debt through the methods and accounting systems innovative.
accompanied these circumstances the lack of legal systems and legislative and regulations and instructions for these companies and institutions and weak systems of supervision and control in addition to financial liberalization for many companies and opening up the global, including allowed for any investor to buy shares of any company, any place more difficult for him to follow-up actions of these companies directly came governance to provide protection to shareholders.
He noted that other reasons pushed to think of running good governance to business organizations as a result of inference that behind this mess is a problem of mismanagement, so warranted the production style of good governance in order to limit problems .
and the importance of governance in the treatment of this disorder, said Dr.. Sadiq Shammari that its importance lies in the organization of the work of banks and adjusted according to the rules and regulations of the mechanisms of private offers to owners and shareholders access to the management of banks with full transparency and disclosure, without interference.
He also contributes to corporate governance in the development of private savings through created the confidence of the community to deal with banks with efficiency and the integrity and high skills, and gives the right to question the company's management in the investment trends and create a profit and to identify failures and risk while ensuring performance monitoring for the purpose of supporting the stability of financial markets and reflected that confidence by ensuring the safety of the business entity and ensure that the responsibilities and commitments to stakeholders.
He said that the strengthening of trust between stakeholders and management will help to encourage banks and financial institutions to implement strategies that contribute to improving the performance indicators banking and avoid exposure to risk and crisis.
He pointed to Iraq's need for corporate governance in the private banking sector to overcome the difficulties faced by the banks and get rid of ignorance and corruption and to achieve success and growth in the business of banks.
and on the question about the problems and constraints faced by the Iraqi banking sector, said banking expert approved Shammari, who served as managing director of the National Bank of the Islamic as well as teaching the material sinks in a college of Iraq that the problems faced by banks is the result of rapid changes in information technology, as well as financial crises and for the purpose to avoid these crises should be the commitment of banks, regulations and international rules and abide by the rules of governance and its mechanisms as evidence of action to reform the financial and institutional.
He Shammari said the lack of banking culture for many of the owners of capital and the weak role of boards of directors in exercising their powers of the lack of adequate qualifications and the lack of controls and mechanisms governing the structure and composition of these councils and failures to define the powers of the executive departments and in accordance with the instructions of the Central Bank of Iraq all these factors led to a gap between owners and managers called the agency problem, believed by many that the managers of companies to Ayamlon to achieve the interests of shareholders more efficient.
and said: Anazh gap can be bridged only through the mechanisms of governance as the only way to determine the relationship between shareholders and the executive departments, pointing out that promoting the principles of good practices of governance and its mechanisms require passing through two channels as the first central bank in charge of organization and control of the banking system. The second is the banks themselves, considering that the absence of governance and its mechanisms will result to chaos and moral corruption can not control it.
He concluded by saying a bank container President to mobilize deposits and savings of individuals and institutions both at the same time Musdramanma to finance most of the sectors of the economy due to the evolution of financial markets, so they are, any banks and other financial institutions are called upon today to be a leader in the adoption of the principles and mechanisms of governance, the Middle East region that poor governance tools in the banking systems has led to both economic crises and collapses.
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