Iraq needs a unified vision of the Government and banks.
27/9/2016 12:00 am
Baghdad/Suha Al shaikhli
The private banking sector is one of the important pillars of economic activity in all countries no matter how diversified their activities, and highlights of the engines in a country like Iraq, particularly in the critical period, but multiple financial constraints and implications of trends influenced the performance of banks and the economy alike, despite the availability of human resources and advanced technology.
Banker draws Abdelrahman speaking shaikhali» morning» that global oil prices and financial pressures because of the war on «ISIS», together with pressures of the IMF and the World Bank, and commitments that dates back to before the year 2003 exacerbated the financial constraints.
Sheikhli pointed out that if these conditions will lead to negative results, including money in banks trading deficits will be reflected negatively on the funding of other economic activities, particularly in the areas of domestic production and import export, stressing that indiscriminate import leads to wasteful of hard currency might as well spend indoors and replaced by local product.
Sheikhli refers to Rentier economy requires speedy alternatives to diversify their tax rate increase budget resources sensibly so don't push my income, besides customs tariff notice because many goods are exempt from fees and stop waste and scalable administrative and financial corruption to develop economy.
The difficulty of the task before the stressed banking sector alone in drawing a road map for avoiding a financial crisis unless there is a common vision of a unified economic constants with the Government, explaining that the economy was still without ID aumlamh, adding that the administrative and financial corruption affected the cash blocks obtained from the sale of oil in 13 years, there were no fixed budgets for entry and exit of money earned and not used to the development of the productive sector, both public and private.
And between shaikhali role of modern technology in banking actually service especially in the areas of transportation and communication has contributed to the diversification of great services for customers including automated banking deal in addition to the competencies and human resources has been active since 1993 where Iraq works since that date on the free economy window by opening banks.
Continued from that time till now expanded patch work in private banks and the need to share significant human cadres, mostly retirees who have experience and competence but lack the correct vision of a free economy in the world at the moment, noting the difficulty to develop these themselves to be part of the free economy, these employees can be operational no advisers and each map. in dealing with sophisticated technology, although he has good ideas in banking and finance.
He stressed that the experience now to young people and to take part in the banking business, but, but most banks are looking for practical experience and academic expertise we have tried to put youth in practical courses but still perform minor, however some of them responded to gain experience and some of them now run the manage partitions knowing that their experience does not exceed five years but few actual need not fit so sometimes we have to use the ancient staff and retirees of them stressing the need to develop the competencies Actual requirements proportional to human.
A number of private banks suffered from financial shortfalls forcing citizens to hoard his money in his house so necessary to restore confidence in the financial institution to invest in projects that prompted the Central Bank to introduce deposit insurance company capital of 100 billion Iraqi dinar, so some experts felt that this amount of few where some merchants owed owed larger amounts.
Sheikhli noted that hoarding cash at home is a problem, where there are 80 percent of cash in banks and the remainder is 20 percent of cash trader outside the official Government, 15 percent of this cash deposit and chunky outside of banking is when traders and contractors and capitalists in Iraq and the remainder is 5% and is experiencing problems and have treasured up due to loss of confidence.
Sheikhli concluded by saying: that the Central Bank is the Bank President is responsible for ensuring that deposits in all banks in the world when it obtained approval of the legitimacy of their work,
their first act is the approval of the Central Bank and presumably under this approval to guarantee customer deposits in the Middle East and North Africa where the Central Bank is that guarantees deposits, as the Central Bank using policy governance governance in Performance.