Specialist banks stumble investment activities

17/9/13 12: 00 am

Description of article 28 of law impeding

Baghdad-Chartreuse, Chen

Counting economic expert Dr. Akram Mohammed Hassan of the banking and financial sector one of the most important factors in the shift from a centralized to a market economy and urged the lifting of restrictions of movement, referring to the experience of the Eastern European States in this field.

"good for" morning "that the economic reform process begins of banking reform as an essential lever of the Israel economy, pointing out that article 28 of the law on banks have restricted banks from activities which are at the heart of its work related to investment as well as prevent any activity not listed in Article 27 further approval from the Central Bank.

The commercial banks to increase their capital to 250 billion not enough for economic reform unless paragraph 27, which reads "bringing banking activity was not mentioned in the article" why banks are restricted in the exercise of a particular aspect of banking and non-exercise of the second side.

Keep away from risks

He also managed decisions away from risk, pointing out that the core of the work of the banking sector risk cannot be reduced to zero if there are mental insists on reducing the risks of Arabian Jasmine can do its part so that the bloc during the process of lending or financing any project or business deal must be accompanied by risks such as exchange rate risk and the interest rate and payment and liquidity are thinks only of revenue that goes to currency trading activities or enter into the auction and issues away from the investment.

Market system

The market system does not mean only freedom of trade and the lack of controls kmerkih and the free transfer of capital, but could be in the form of state capitalism any State involvement with the private sector to develop projects to contribute to the development and needs a functional body competent to act within a clear institutional frameworks and a strong State to play the role of regulating the economy and economic reform is in the hands of the State.

The role of the State

Hassan believes that do not interfere with the private sector, and support for it is weak, the role of the State in support of large-scale projects and development of the State system under the conditions of local market attributed when enacting the law reform project should identify clear goals and visions and there is the will and determination of compliance and follow-up.

Respect the law

He explained that economic reform cannot guarantee the success of the legislation because there are hundreds of laws but still facing the practice of customs and traditions and social frameworks is not respecting the law often, law must be msdralkwaad and controls to manage ghazaltnvase to playing a tremendous role in economic reform through the neighborhood of ministries and requires clear mechanisms for collective decision and accelerate the process of economic reform.