Central Bank: private banks are better than state-owned ones
Friday, November 19th 2010 3:52 PM
Baghdad, Nov. 19 (AKnews) - The Iraqi Central Bank (CBI) assured on Friday that the performance of the private banks is better than the performance of State-owned banks, indicating that the lack of restrictions and routine procedures in private banks was a major cause in the evolution of their work.
Muzher Mouhammed Saleh, the chancellor at the central bank told AKnews that the private banks developed greatly during the past period through the development of monetary dealings after intensive follow-up from the CBI.
"The future in Iraq will be for banking transactions of private banks being free from the governmental routine constraints and permanently develop their work.
"The investment companies and businessmen don't have fears from depositing their money in private banks after they proved their important roles.... The increasing numbers of private banks in Iraq show the recovery of economic situation and liberation from the old banking restrictions."
The Iraqi Finance Ministry decided on May 19 to form a committee to develop and organize the work of private banks in the country, because of fears of businessmen and investors to deposit funds in these banks.
The total capital of Iraqi private banks is one billion and 600 million $ during the current year after they were 30 million $ in 2004.
The number of private banks reached to 31 banks throughout Iraq, while the number of their branches in Baghdad and the provinces increased from 100 to more than 600 branch to compete in their number and level of services with branches of Rafidain and Rashid banks.