Supervisory control and its role in strengthening the banking compliance An applied study in a sample of Iraqi banks for the period (2020-2021)

Abstract

The aim of the research was to clarify the conceptual framework of supervisory control and compliance. What are the responsibilities and duties that fall on each of the supervisory supervision committee teams and the banking compliance staff, and is supervisory control considered to enhance and support banking compliance in Iraqi banks? to make recommendations.

 After reviewing the various theoretical aspects related to regulatory oversight and banking compliance, the research worked on the practical side to prepare a questionnaire consisting of a set of questions that fit the hypothesis developed by the researcher. The Trade Bank of Iraq (TBI), the International Development Bank, and the Gulf Commercial Bank. The researcher relied on the questionnaire as a main tool in collecting private data in the variables of the study as well as being compatible with the study title (Supervisory Control and its Role in Enhancing Banking Compliance). Department of Monitoring and Inspection in the General Directorate of Banking and Credit Supervision of the Central Bank of Iraq in Baghdad Governorate, where (115) forms were distributed to the research sample, and (110) were recovered. The research found results that indicate that proper banking supervision is a prerequisite for the continuity of banking activity and that it consists of a mixture of desk supervision, cooperative supervision and field supervision (for inspection), where the Central Bank of Iraq exercises the function of supervisory control over the performance of banks to determine the extent of their compliance with banking legislation and to identify weaknesses. In the financial, administrative and operational aspects by determining the degree of banking risks to which banks are exposed in order to maintain the financial soundness of the banking sector. The research concluded with recommendations, the most important of which is that the Central Bank of Iraq should pay attention to the regulatory and supervisory levels by developing methods, procedures and supervisory control work using advanced and modern programs and global databases for follow-up and early detection of risks.