PDA

View Full Version : Calls for the creation of twinning between local and foreign banks



Hue Mi
02-16-2014, 08:53 PM
Calls for the creation of twinning between local and foreign banks (http://www.dananernews.com/News_Details.php?ID=4468)

http://www.dananernews.com/LionImages/News/2-2803assssw.jpg

2014-02-16

Baghdad/JD/... The parliamentary Finance Committee, called on the Central Bank to develop new procedures through which encourages the creation of twinning between local banks and banking to improve Iraqi banking.

Committee member Jimmy is capable of agency/JD/: "its Central Bank called in the previous procedures, new regulations encourage domestic banks to create a bank with foreign banks twin for support and development of the banking sector, especially since Bank Uruk, Basra is suffering from financial problems can be solved through" twinning".

He added that strengthening bilateral ties between local and foreign banks would pay to develop the Iraqi banking system by introducing modern banking systems and facilitating transactions among banks, calling for speedy enactment of a new law on banks and abolition of the existing law to improve banking.

The banking system in Iraq consists of forty-three banks as well as the Central Bank and distributed by property (7) and banks (30) Community Bank including (7) in addition to Islamic banks (6) foreign banks.

Although the investment law No. 13 of 2006 has excluded investment in the banking sector of its investment in the banking sector takes its legal framework based on Central Bank Law No. 56 of 2004 and no. 94 of 2004, the minimum to establish a bank in Iraq 100 billion dinars (around 85 million dollars (./finished/8/

dinar_dude
02-17-2014, 12:24 AM
This is a good step, if it's actually acted on. Partnerships and mergers will only prod iraqi institutions to stop operating in the dark ages.

HumbleGenius
02-17-2014, 12:31 PM
This is a good step, if it's actually acted on. Partnerships and mergers will only prod iraqi institutions to stop operating in the dark ages.

This is the first I have heard of bank of basrah in years. Thought it was dead. Hope the theory takes off and basrah engages. It would be good for my portfolio if I could salvage basrah from the junk pile I currently have it placed.

dinar_dude
02-17-2014, 12:57 PM
Me too. I think the CBI's plan was to liquidate Bank of Basrah, but I haven't heard any updates. The bank is still be in trouble, but I hope they may achieve a partnership. It'd be great for my portfolio as well. Basrah is one of the wealthiest oil regions, and it'd make sense for a western bank to operate there, if it would choose to tolerate the poor security.
I hope this recent press is an indicator that the CBI doesn't want to have to deal with the problems the private banks are having in keeping up with capital increases, statist gov't control, yada yada, and in turn is becoming amenable to foreign banks being more present in the banking sector.

ChinaGirl
02-17-2014, 02:28 PM
LOL .. I love the piled up money (passed their head) in the teller's window... nothing like taunting a thief ... although, what's it worth ?? a few thousand US$ probably LOL - still lots to an Iraqi citizen maybe.... just seemed funny to me ... new marketing campaign ...free wheelbarrow with every new account opened

HumbleGenius
02-22-2014, 06:30 PM
Me too. I think the CBI's plan was to liquidate Bank of Basrah, but I haven't heard any updates. The bank is still be in trouble, but I hope they may achieve a partnership. It'd be great for my portfolio as well. Basrah is one of the wealthiest oil regions, and it'd make sense for a western bank to operate there, if it would choose to tolerate the poor security.
I hope this recent press is an indicator that the CBI doesn't want to have to deal with the problems the private banks are having in keeping up with capital increases, statist gov't control, yada yada, and in turn is becoming amenable to foreign banks being more present in the banking sector.

I received email confirmation from Basrah Bank today. To quote:

"We are still in business"

That is very cool.

Fishindinar
02-23-2014, 03:42 AM
If they are still in business is their stock any good?

HumbleGenius
02-23-2014, 08:26 AM
If they are still in business is their stock any good?

I was wondering the same thing. I took a shot in the dark with the email to the bank staff. Not sure who to ask that question. Like you I wonder if it was saved by a 3rd party that took over the bank rendering our previous ownership null. Time will tell. But at least the bank has to be operational for us to have any hope in the stock so thats a good thing.

dinar_dude
02-23-2014, 12:02 PM
The people to contact about the stock question is the Iraqi Central Depository at the CBI.
I don't have any points of contact there. They have a box to submit questions, but rarely
get back to you.

calstar
02-23-2014, 09:39 PM
[QUOTE=dinar_dude;19319]The people to contact about the stock question is the Iraqi Central Depository at the CBI.
I don't have any points of contact there. They have a box to submit questions, but rarely
get back to you.[/QUOTE

Is the stock price is still the same. The stock price was 1.28 last time I checked. Lets hope they are calulating our free shares they owe us.

HumbleGenius
02-23-2014, 10:31 PM
[QUOTE=dinar_dude;19319]The people to contact about the stock question is the Iraqi Central Depository at the CBI.
I don't have any points of contact there. They have a box to submit questions, but rarely
get back to you.[/QUOTE

Is the stock price is still the same. The stock price was 1.28 last time I checked. Lets hope they are calulating our free shares they owe us.

No sells/buys or news for three years. No financial statements either. This stock has no value at this time in that one cannot sell or buy now to determine market price nor financial statements to determine a book value.

Fishindinar
02-24-2014, 03:02 AM
If they're still in business the money from the stocks must be somewhere. It would be theft, if they just said "sorry we took your money from stocks you bought", there must be some accountability. This would show bad faith to the rest of the ISX.

HumbleGenius
02-24-2014, 02:44 PM
If they're still in business the money from the stocks must be somewhere. It would be theft, if they just said "sorry we took your money from stocks you bought", there must be some accountability. This would show bad faith to the rest of the ISX.

Accountability comes in the form of audited financial results of which have not been done in over three years. Now where is the money. Remember, not talking about savings/checking acoounts here we are talking stock ownership accounts. For discussion I am just going to use even numbers not real ones. Here goes. Basrah bank opens up 10 years ago lets say with 1million shares sold at 1 IQD per share. People now own the shares and the bank has 1M IQD to work with. Point 1 is. It now does not matter to the actual health of the bank if the share value goes to 10 IQD. The bank sold them so they dont have them when it goes to 10. The nine dollar increase when sold goes to the person that bought the original person that bought the shares for 1IQD. Likewise if that value falls to .00000000001 IQD after the initial sale it has no direct impact on the health of the bank (albeit cause and affect would probably be the basis for these value moves but not relevant to the point here).
Now to the original 1M IQD the bank raised. For all intent and purpose these funds cover the cost of doing business if other sources cannot be utilized such as profits on loans provided, profit from outside capital investments, etc. With that said, lets say the bank used 600k of the 1M on loans to construction companies, business, homeowners at 5%. Well life is good assuming all the borrowers pay their loans back. Original 600k plus 5% interest profit comes back to the bank? What happens when 500k of those loans turn out to be bad. Zip zap zoom the borrowers default and the banks original 1M IQD is now 500k not to mention the loss in salary expenses, etc to administer the loans.
When the above scenarios begin to play out in reality you start to see companies becoming delinquent on their financials because they know the public disclosure would crash their stock and in the case of banks require the cbi to take over. So companies decline to submit their financials, in time they are delisted from the stock exchange and they are then unreachable by the original stock holders. No laws broken here. Just normal capitalism at work. Companies succeed, companies fail. Remember, a company does not have to be in the stock market to do business if start up funds can be found elsewhere. (Did not proof this. Hope it makes sense)

Fishindinar
02-25-2014, 05:01 AM
I know I was just venting. I have/had 10 million shares.