The banking sector between the jaws of the foreign capital
26/9/2016 12:00 am
Mohammed Sharif Abu maysam
Overthrew the fiscal deficit, which few private banks, trust status which worked on sportsmanship and with great difficulty, the Central Bank and private banks Association about the situation of mistrust resulting from impromptu decisions phase in which overthrew the dictatorship years all attempts to draw private banking culture features in the collective mind of Iraq as well as the ramifications of circumstances following the years after the change.
The ramifications of this deficit resulting in case of inability to fulfill the rights of applicants by these banks, prompting some of these applicants to demonstrate and manage a bank building in front of the crowd to demand their money following the Central Bank's decision establishing guardianship of this Bank and try to reassure depositors to pay their money of legal reserve of 15% of the value of deposits.
Some involved in the Affairs of private banks justified what happened on that stemming from delayed payments to contractors who financed their loans from these banks, making contractors as debtor banks debtors unable to repay debts, as well as what is said about these benefits banks by the Central Bank branch in Kurdistan lingered to fulfil his obligations in about a year the financial crisis territory.
In addition to lower prices for the real estate investor or as collateral for loans that have not be able to pay contractors.
Whatever the reasons, the access of such cases and repeated reveals flaws in the nature of banking system in the country in General and in particular private banks.
The bottom line: the situation of trust between the public and private banks were exposed to what looks like the one that blew all the features of construction over the past years, said University reputation, damaged the reputation of the Pan because private banks recently happened with repercussions that Bank, which means start again from scratch to rebuild that confidence you need to lift the rubble of destruction and then work on solid foundations to build such trust structures requiring concrete pieces of hard work And information support and effective advertising and marketing for banking services by the critical importance of a law guaranteeing public deposits, which will establish a company to insure bank deposits.
Otherwise this will remain believers trust of rubble and keep private banks plural to sell the dollar and financial speculation without real role in economic development processes and in the macroeconomic scene which moves at an accelerated pace towards market mechanism with the support of international financial institutions.
Accordingly, the question of restoring confidence between the public and private banks will require a long and serious and sincere efforts to invest in banking and other media marketing workshops to build new bridges based on fulfilling the rights of depositors and raise credit rates and abandon notions of quick profit and investing in public first through banking marketing events.
And because the market economy cannot do without a healthy banking sector, the goal of restoring confidence which will need a long time maybe it will penetrate him quick transitions to a market economy as government program announced by the creditors' requirements and in particular World Bank and the International Monetary Fund, which means that the arena will be free from the private banking sector at this time, therefore, the opportunity will be available to the Government banking sector to lead the public still trusts the Government institutions as well as the urgent need to move money stashed away That estimated by the Central Bank to about 10 percent of the trading block of 40 trillion dinars.
It will state that the banking sector the job away from bureaucracy.
The rapid transition towards a market economy and reliance on local components to create real development in reality as current economic realities require the need for venture capital firms chime in with their wishes and seeking to dominate the local market as part of a Middle East market,
which means the inevitability of global banks access to the Iraqi scene in conjunction with this transformation which reversal of the private banking sector and the weakness of the banking sector,
and that is the real goal established his parties that increase requirements and restrictions on the national economy through debt program Preset with the repercussions of low oil prices.
To access the banks which are the Windows to the companies that rule the world in this confusion in market relations and this economic mess is not a win-win situation for the country, simply because it will monopolize the market
And prohibits the movement of funds to their advantage in the sense that they disregard events that does not want corrupt people in the Government and banking sector the panting behind quick profit in the private banking sector advancement now.