8 percent contribution of the banking sector in GDP



07/04/2014 12: 00 am

Indicator of the success of the Central monetary policy goals

Baghdad Hussein thghb Al-Tamimi

The financial sector has seen in Iraq over the past 10 years despite quality developments among the determinants of various economic fields, where the financial statements of the business results for 2013 compared with previous years, particularly as the base year to the growth in total assets 33 percent and capital 47, 5 percent and cash credit granted 60 percent and deposits 1, 6 percent (excluding Central Government deposits and term deposits current nature) as the contribution of the banking sector in the gross domestic product of 8 percent in 2012.

Monetary policy

He said the Bank was Samir Al-nasiri said in an interview to "morning" that the phased application of monetary policy after the Central Bank of Iraq Act 56 of 2004 and the Banking Act 94 of 2004 it became clear that the Central succeeded in achieving the central goals of monetary policy to stabilize the monetary system and counter the inflationary wave after the significant improvement in the exchange rate of the Iraqi dinar as well as building foreign currency reserves to build solid foundations in maintaining economic stability and building open considerable scope for investment.

He noted the positive role of the interest rate reduction in the annual inflation rate in 2006 to 5.6 percent in 2012 as well as the phenomenon of dollarization and speculation that the Central Bank has succeeded in maintaining its independence through our induction and analysis of monetary policy and the experience of the previous years.

Restructuring

Nasiri Central student study proposals for developing and modifying some of the existing monetary policy discussions and to restructure and reform the private banking sector that include procedures and mechanisms for forming a higher Council for economic reform in Iraq included experts from Government and private sector is building a new strategy to move the economy from its interlocking to the market economy and the Iraqi banking sector's contribution to economic development and to identify policies and mechanisms for transition to build a banking sector reform strategy for the coming years.

And the importance of creating a banking regulatory environment allow for the development of the banking system by activating the recommendations of the workshop held by the Central Bank of Iraq at the end of 2013 and to study, discuss and amend the laws that govern the banking business in Iraq in line with the current and future developments in the banking system.

The technical gap

He focused on the importance of addressing the technical gap and ensuring the legal and technical requirements for a wide range of twin State banks and private banks and international banks with the aim of developing the banking and payments system modernization and organization of the financial and monetary circulation in accordance with the most modern electronic banking systems.

He pointed out the need for ministries and public corporations which operate on the basis of the market choose the appropriate banks (Government or private) to deposit their financial resources and carry out all banking operations and assume the responsibility of choosing the appropriate banks, as well as the development and expansion of banking services provided by banks, which average around (15) to (51) service contained in the provisions of article 27 of the Banking Act No. 94 of 2004.

He stressed the importance of banks lending collected jointly that surpass large capacity for development lending to any of them, which contributes to meet requests for this type of loan, as well as strengthening the corporate governance of commercial banks through the application of the Charter of the Organization for economic cooperation and development on the practices of corporate governance, to follow developments in the Basel standards (2 and 3).

Curricula development

He stressed the need for the establishment of a special chamber within the administrative structure of the Central Bank of Iraq for the development of the private banking sector in all areas of art and design curricula development electronic systems and the preparation of programmes and policies for development, as well as development and support and stimulate Iraq market for securities and find tools that push towards raising the price index and market their companies and assets, standards of production and profits.

He stressed the need to develop a new system to ensure oversight of companies and financial institutions «outside» banks dealing with foreign transfers to protect the interests of citizens and combating money-laundering operations, and establishing a corporate banking chock as the establishment of deposit insurance and credit guarantee Corporation and the follow-up and study of market risk.