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Experts: Increasing the number of banking companies and banks is a positive indicator

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Experts: Increasing the number of banking companies and banks is a positive indicator

 Baghdad / Zahraa al-Jassim

The Central Bank can not stand against the process of increasing the banking companies and turning them into banks because the market in general absorbs it, remains the main problem is if the process of economic development of industrial, agricultural and tourism, is enough of these banks for services that can be provided later, according to the vision of specialists In economic affairs, who also emphasize the need to recognize that the financial and banking work in Iraq today is the most dominant on the Iraqi market, so that the movement of trading in stocks and bonds in the banking sector is the largest, so the transformation of banking companies to banks or establish suction A new ARF is normal and positive at the same time.
"There is no increase in the financial transfer companies, but there is a decrease in the number of these companies, because some of them turned into Islamic banks, and this has nothing to do with the currency auction, because the window selling currency is a procedural matter," said Majid al-Suri, an economist. , So there is a tendency to reduce the number of financial transfer companies to the maximum extent to eliminate the potential of money smuggling because these companies in some cases are not subject to the rules of compliance.
As for the banks, there are so far about 68 banks and there are requests for these banks, therefore, the problem is not in number and in capital, according to the picture: The important issue and required that this is a free economy, regardless of the lack of direction and any free market economy, Whether it is a social, social or social economy is natural, but: Our problem so far has not been determined the identity of the Iraqi economy, so the owner of the capital, regardless of the source of this money heading to the way that maintains the capital and profits that can be achieved, so employment in financial activities, the transition to banks is a historical trend In the whole world and not only in Iraq.
The picture indicates: There is another view that confirms that the decline in the number of companies is also due to the procedures of the Central Bank and also the participation of some money exchange companies in the operations of illegal, according to information, some of which comes through the US Treasury backed by documents and evidence in addition to the Central Bank's evidence, the number of companies declined recently From 2400 to 1700, on the other hand, the Iraqi economic reality says that there are requests from financial transfer companies to become banking institutions, and there are foreign institutions open branches in Iraq, and the Central Bank can not stand against these things or prevent them because the market In general it accommodates, for N if the basic problem has industrial, agricultural and tourist economic development process, I think that the number of these banks is not enough for the services that you can provide.
He confirms: "The question is why the transfer companies are transferred to Sarrafat. This is normal because these companies, when they become large capital, start to turn into more stable activities through the banking system, so that the share of the bank in the auction becomes bigger and more secure, and Has a deal with the private sector of trade and with individuals wide, especially as Iraq in general has been transformed into the private sector and the freedom to engage in economic activity, adding: On the other hand, the central bank also has no barriers to open large banks or branches of banks, which supports the practice of banking activity , So the transformation of the companies The transfer of money to banks or the establishment of banks as a public address is normal and no harm, but it is a positive sign, which means that people are more dealing with the banking system and leave the traditional habits of payment and expand the credit position, thus is to move the economy of the country, where it can reach These banks to the cities and the countryside. "The problem now is that banks in Iraq are like banking companies, and here I blame not only the banking sector, because the Iraqi economic structure so far depends heavily on oil and we do not have real productive sectors that can be supported by the banking sector, so the latter remained a sector Profitably depends mainly on the currency auction. The bank had previously indicated that, based on the Board's decision No. 39 of 2017, it was decided to wait for the approval of the approval of the plan to open the branches of financial transfer companies in Baghdad and the provinces of 2017-2018, noting that the decision excludes companies that complete the requirements Converted to Islamic banks. " On February 23, 2016, the Ministry of Commerce announced the change in the activity of six companies for the transfer of funds to Islamic banks, indicating that this was done under the Islamic Banks Law and Companies Law No. 21 of 1997 amended and the approval of the Central Bank of Iraq. The Central Bank of Iraq Law No. 64 of 1976, as amended in Article 41, states that the Bank grants the license to practice banking to government banks established by law or joint stock companies established in accordance with the provisions of the Companies Law No. (36) of 1982 amended. Banking work.

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