background International Monetary called for “close watch” to supervisors, different authorities and the banks themselves, to avoid “more negative surprises and protect taxpayers,” after the fall of Banif and BES.
” recent events demonstrate the need to continue to make efforts to promote the profitability of banks, the quality of its assets and its governance, “the IMF report after the conclusion of the third mission of foreign aid post-program monitoring, released on Friday.
to “avoid more negative surprises and protect taxpayers in the future”, the institution led by Christine Lagarde believes that the problems of banks require a “close watch” supervisors, authorities and banks themselves, which should “strengthen their balance sheets.”
for the Fund, regulators and shareholders of banks should strive to “improve governance of banking, identifying and addressing the problems from early. “
” the process of selection and appointment of members of boards of directors should be reviewed to ensure that, in addition to meeting certain requirements, the nominees are encouraged to make more profitable operations and at a faster pace “said the IMF.
the organization also argues that” adequate financial cushions and more transparency in financial operations are essential to maintain confidence, “considering that” coordination between supervisors, authorities and banks will remain central to ensure that the banking problems are dealt with expeditiously. “
in response to the IMF, which is also part of the report, the government admits that” there is a growing consensus on the key issues that threaten the financial system “particularly with regard to asset quality, profitability, capital and governance levels.
in this sense, the executive said that is considering measures to encourage banks to have fewer overdue loans including a increase in provisions and impairment charges.
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