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Hue Mi
02-15-2014, 10:49 PM
The reality of private banks in Iraq. (http://alestiqama.com/?p=70360)

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15 February 2014, 10: 34 am
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Baghdad, Alalam-More than 10 years after the invasion of Iraq still dominate the State vital economic sectors and the banking sectors where the State banks accounted for 85% of stocks by recapturing the majority of transactions and remittances, deposits and loans.

Former adviser at the Central Bank of Iraq Mohammad Saleh appearance that the banking sector in Iraq is still fledgling and therefore need to take care of the State, which remains the largest owner in the Iraqi economy.

While allowing the private sector to enter the banking business, the relationship between the State and private banks remained ambiguous relationship with instances of tides the Government has sought to establish this relationship on a sound footing and promote private banks, among other measures.

For example, the Government prepared early this year the Bill of bank deposits as regionwide to a paradigm shift in the work of the private banks.

Recently, the Central Bank announced the lifting of guardianship funds Warka Bank Al-Ahli after two years of enforced due to financial insolvency.

The Warka is one of the largest private banks in about 130 branches in Iraq and other branches abroad and the first such banks adopt electronic accounting.

Decision lifting the guardianship of Warka satisfied in private banks generally as the Executive Director of the Association of banks-Nasser Hassan, stressing that the resolution would restore confidence in the banking sector after flickering assuming guardianship of Warka and kiss on Bank Basra.

The CBI was prepared, inter alia, to make private banks including minimum capital private banks about 250 billion Iraqi dinar.

But the Executive Director of the Association of banks-Nasser Hassan noted that the capital of some banks is greater than the value of their deposit by calling on the banks to encourage citizens to savings, not consumption.

Hassan pointed out the paradox of low banks in securities markets, although they are all successful banks operating profit, hoping to develop a mechanism to change this anomaly through the opening of the market in Erbil and Basra for securities, for example.

He is a member of the parliamentary Finance Commission Abdul Hussein Al-yasiri on what the Iraqi banking sector is the guarantee deposit law adding that this Act of discussion in Parliament and includes governmental or private company assured depositors that their money is guaranteed as well as syndication through the combined efforts of multiple banks, saying that the practice was also absent from banking.

Financial expert, Khalid Al-mayahi, the CBI says: "the experience of private banks in Iraq began late and has preceded us in this area most of the neighboring countries and Arabic community and nature development, social investment and reasoned that the private banks don't lend money back until they are funding projects after her economically and share profit and loss with investors and aims to achieve a common interest between the two sides eventually leading to optimal operation of economic resources and the reduction of unemployment and this requires support and attribution From the Government to the banks to prove themselves and operate in the financial markets."

As Economist-Hassan Al-Awadi says: "the main problem impeding the banking business in Iraq is the lack of transparency of banking to the Iraqi citizens can deal with banking developments occurring around the clock, adding that the phenomenon of private banks had sought at the global level only and is expected to increase activity in the Middle East and the Central Bank of Iraq with private banks, one of the channels of Government support".

And the International Monetary Fund said in its latest report released by the Iraqi banking system that the Central Bank is expected to make greater efforts to develop tools of monetary policy, strengthen control and accelerate the restructuring of the sector.

And experiences of the various sectors of the community and governmental banks important tributary streams of activating trade and financial speculation push the national economy forward is playing an important role in public and private funds are invested in various projects of benefit to the client and State and this is what we all have to move capital and investment.

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