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Hue Mi
03-06-2014, 07:42 AM
Mobilizing resources for development requires a sophisticated banking system (http://www.alsabaah.iq/ArticleShow.aspx?ID=65967)

05/3/2014 12: 00 am

Biting back: banks have played a major role in the next phase

Baghdad-Farah pumice

When expanding the limits of development increases the need for a more sophisticated and broader banking service levels, so contributing to the banks in an effective way in the process of economic development through the provision of resources to meet basic needs, either directly or indirectly.

Financial sector aims to mobilize the necessary resources for economic development through the banking system or insurance or through the Iraq market for securities, leading to an increase in the added value of the use of the services and the provision of foreign exchange through remittances.

Baghdad provincial Council head Riad biting back "morning," he said regarding the importance of the banking system: "to lead a developmental role and funding banks well in the next phase, should exceed five key challenges that will draw features an advanced sector."

According to biting back the first challenge, "based on the need to support the banking sector to local government projects SMEs as gate operation and employment in society suffers from high unemployment, for a supporting role for growth through larger projects, supply of raw materials or intermediate goods or half-finished along with other logistical services such as transport and packaging activities, or contracting."

In the second challenge to what he called the "parallel economy does not depend on whether banks or deposit receipts resulting from it, while denying the banking system the amount of enormous liquid leak mostly in consumer operations or freeze up in real estate and land and thus benefit the productive economy," as well as "low rate of coverage in the Iraqi market, compared to population, this proportion does not exceed 29 percent currently, compared to 70 percent on average, no more than Bank accounts at all banks to five million account nearly involving accounts of individuals, companies and public bodies", according to the so-called third challenge.

as regards the fourth axis, biting back "is credit concentration at both the policy and economic sectors," in this regard the need to re-examine these policies so as to be more fairness and bias to economic diversification in various areas.

He also noted the need for banks to seek more creative and innovative in devising working mechanisms In the areas of recruitment, employment and generate profits as a result of real useful for other local projects, such as limited v.

But he noted "the absence of a well-developed banking system will lead to an influx of foreign investment participation in economic activity, because of the most important conditions for the success of these investments is a device capable of dealing efficiently with the needs, whether those relating to different types of borrowing, foreign relations, or to ensure corporate money invested," he said, adding that this meant "a strong correlation between the banking system and the development process itself.