In the light of modern banking .. promote twinning between Iraqi and foreign banks
In the light of modern banking .. promote twinning between Iraqi and foreign banks gradually or suddenly?
June 10 2012
The banking sector in Iraq desperately needs the participation of Arab and foreign banks by contributing to the bank's capital as well as transfer of modern technology enjoyed by foreign banks through the introduction of bank employees cycles sophisticated about modern banking and comprehensive so that it is the process of mating between banks in a gradual, not sudden , and contribute to providing the necessary banking climates.
Mechanisms are ancient
And the whole specialists on the need for the participation of Iraqi banks with their foreign counterparts because the first is still working mechanisms of old academic, economic, Salim al-Ani, that this process contributes to the increase of capital of Iraqi banks are a great addition to the introduction of hard currency into the market, which will reflect positively on the development of the Iraqi economy and speed up the movement of investment increases the total output in the country, arguing that progress of the banking sector is a clear sign indicating the country's progress, noting, that the entry of international banks increases the investment ratios of 25% to 30%, stressing the need to provide climates bank needed to be prepared of the partnership through a change in legislation the old private banks and enact new legislation kept pace with the evolution in the banking system in the world, pointing to the need to educate citizens on the systems, modern banking because our banks are still working mechanisms of old, while said economist Ali al-Jubouri partnership of Iraqi banks universality contributes in the transfer of modern technology as well as that this approach provides significant employment opportunities, stressing the need to determine the rate of participation where the capital requirements allocated by the central bank, which is estimated up to (250) billion dinars, adding that foreign banks do not deal for investment but in order to provide banking services so that the central censor the work of these foreign banks, noting that the number of Iraqi banks in which the posts of foreign banks and Arab in their capital is six banks are different rates of posts where from 50% to 85% and the participation of Gulf banks with some banks Iraqi and a British bank with a bank of Iraq, stressing, the effect of a partnership of foreign banks and Arab on the recovery of the banking sector in Iraq because the new law allowed the participation of foreign capital with the Iraqi capital as well as the introduction of modern technology and the technological and the possibility of opening credits, direct with any bank at any point in the world ..
Do not work independently
The economic expert d. Amir Jumaili said: that the foreign banks operating in Iraq do not work independently, but under the dark banks of civil domestic and investments of regional countries in Iraq with a commercial character, and the number of banks, Arab and foreign made after the issuance of the Banking Act No. 94 of 2004 for licenses to establish private banks in Iraq, whether 100% or in partnership with local Iraqi banks to open branches or her to work in Iraq ..
He emphasized that the necessity require the twinning with international banks Iraqi banks need to develop a structure and staff and the expertise of a global trusted to raise their performance, and went on to say; that the banks need to solve problems related to credit and the granting of credit are disciplined for housing projects and to the investors to exercise their business and to support bad debts and problems related to services banking, noting that it requires the State to re-structure the work of banks and the development of professional cadres, because each bank in Iraq (40) thousand people from a large number of beneficiaries and crowded can not deal with any bank as it should ..
And a student member of the Committee on the economy and invest in the House of Representatives Abdulabas broadly the need to create a bank credit contributor to ease the heavy burden borne by state banks, and went on to say, that the founding of the Bank shareholder by the public and private sectors would fail on the government banks, which bear a heavy burden, provided that granting the bank contributor to some of the powers that help him to develop the investment process in the country such as opening credits and the granting of loans and certain financial transactions other, adding that the banking sector needs to Systems modern banking fit in with what the case in countries of the world because the Iraqi economy is heading towards a free market, calling for the introduction of the technology in the banking , while the businessmen said that the banking system is experiencing confusion and a clear result of the absence of modern banking technology and programs educate citizens, making his work limited to the issuance of the letter and bid farewell to the money.
Is there cooperation between foreign banks and government banks, thus contributing to the development of banking?
Mr. Kazim Mohammed General Manager Rasheed Bank, says we have agreements to work with banks outside of Iraq, some of which previous agreements have been enacted at the current stage and renewal as much as possible to fit the current data and some new Avzatha contemporary circumstances of the conditions of the embargo and the freezing of assets of Iraq's financial and all the banks that deal with waiting for lift decision blockade and freezing once and for Iraq, the intervention force and intensity in the Iraqi market, either through branches licensed to work in Iraq or through banks sent in within the country and both parties are aiming through their common interests that are in the end, in the interest of the national economy, and that the presence of foreign capital in Iraq is important in the current stage, something that would stimulate the national banks to compete and develop in all areas of banking and the first of the capital and reserves and functions which are intended by all the banking business who can do to service Almtaamin by citizens and other customers from different sectors and Rasheed Bank has ambitious plans as it seeks to invest abroad also through the opening of branches in a number of countries or through the purchase of stakes in international banks are supported, among other things permitted by Iraqi law and the urgent need to develop the national economy during the current phase in this area of investment and foreign posts.
A difficult road
The d. Kazem Al-Zubaidi, an expert in the affairs of private banks .. Said facing private banks a difficult road as it is resistant to decades of state control of the sector and due to poor credit culture and the economy into a system of modern banking and the dominance of state banks, the financial sector in Iraq develops slowly after more than nine years of 2003 and there is still a lot of Iraqis do not dealing with banks and because of security concerns increasingly concerned about the completion of most of the business through the MM directly, noting that Iraq's UN its banks own in 1964, paving the way for the dominance of state banks on the financial sector, noting, that most of the private banking limited to the services of deposits and lending personal and a monopoly of the Rafidain Bank and Rasheed Bank presidents Aovernmaan most assets actually two banks and the restructuring to remove the debt accumulated after years of war and economic sanctions ..
He went on to say .. The state banks control 87 percent of the deposits in the country while controlling private banks to 13 percent, and deposits of public sector banks government of $ 30 trillion Iraqi dinars Pima total private sector deposits 11 trillion dinars in return of deposits in private banks 6 trillion dinars, according to the Central Bank is no law in Iraq to prevent private banks from the financing of government projects, either through loans and the purchase of government bonds, but the Ministry of Finance barred government institutions two years ago to deal with private banks in order to combat corruption and misuse of funds, stressing lagged Iraqi banks from other banks can not deal with international banks because we do not have an electronic system in full, and there are eight private banks only offer service ATMs and services credit card There are no transactions between banks, or of payments and international Hhma concern to foreign companies seeking to invest in Iraq and participate in the reconstruction works Central Bank with the U.S. Agency for International Development to establish a single window for transactions with banks and international payments, stressing the need to have a banking system developed to ensure the flow of capital and movement go hand in the same manner as in the world, pointing to the importance of developments desired in the banking sector Traagafha developments in the work environment of financial and banking and economic, we can not imagine the existence of banks handle new technologies and orders to electronic payment Pima remains our constant use of the records office of traditional and recognized the former as well as expansion in the works of private banks in the long internal and external, which is available with the decisions and actions freely wider and greater ease of State-owned banks in terms of aspects of consultancy, as that of private banks greater flexibility in Altaenja and procedures for external oversight in addition to its ability to transfer funds to and from Iraq by linking the Iraqi banks with regional and international banks to have an active role in the reconstruction of Iraq and the success of investment projects.
Introduction of modern technology In banks
The proposed banking expert Jamal Ali the development of the banking sector through the introduction of electronic systems in modern done to give confidence to foreign investors to invest in Iraq, noting that provide the banking sector, modern technology has become a necessity at the present time to raise the investment process, because the continuing needs a modern banking away his money for risk and called on the government to seek to improve the sector by resorting to the use of modern technology in the management of banks, as well as open training courses for workers in this sector and went on to say, and although the law Alastmar No. 13 of 2006 excluded the investment in the banking sector from its provisions, but the investment in the banking sector takes its legal framework on the basis of legal central bank No. 56 of 2004 and the Banking Act No. 94 of 2004 and a minimum of the founding of a bank in Iraq to 100 billion dinars up to $ 85 million ..
He announced the Central Bank for near work to open letters of credit has, instead of the transfer of credit for hard currency, noting that this action will guarantee to make sure that the hard currency that are sold to traders are not paid what were not there goods and dash of the country, said Deputy Governor of the Central Bank of Iraq the appearance of Mohammed, that the central bank will soon open letters of credit rather than transfer of credit, which currently employs, he said, adding that the move will enable the central bank to make sure that the hard currency that are sold to traders comes Mkabha goods to Iraq, summed up the task of the Iraqi Central Bank to maintain price stability and the implementation of the policy cash, including exchange rate policies and management of foreign reserves Eulma and regulate the banking sector.