Asked specialize and managers of banks, on Friday, to amend the Banking Act for the making of the contribution of the President of the Iraqi economy, and stressed that the total capital of the Iraqi private banks reached billion and $ 600 million by 2014, while the Government said it is studying the proposed several projects to strengthen the infrastructure of the private banks and enable them to meet the challenges facing the country.
Banking expert says Majid Al hilfi, a (long press), that "the deterioration of the Bank and not reaching the level of ambition due to heavy legacy inherited by Iraq and led to the collapse of the economy and the banking system as a result of the war and the embargo and militarization and implicate the State banks by external and internal financial relations complex", and "it has led to weakness in banking culture and international confidence and reverse the role of banks in economic and development activities."
John adds that "Iraqi banks, governmental and private, began to recover after 2003 because of new laws and the wide area of deal", adding: "but" the political and security crises overshadowed this sector made slow steps ".
The Iraqi banking system consists of 54 banks, including seven Government, one a modern Islamic Foundation, and 23 special commercially, including nine Islamic, Iraq also has 15 branches of foreign banks, and there are many institutions that some banking, including 34 company transfer and approximately 200 company money to banks or deal with, with loan guarantee and financing for small and medium-sized enterprises, with two electronic banking and smart card, in addition to some 800 subsidiaries of banks and spread over the provinces of Iraq.
It seems that private banks are the main concern of the owners, because of the lack of adequate space for handling and diversification as well as the loss of confidence of the Government and the citizen, making her only the modest activities.
Says Managing Director of Union Bank, Akil trouble maker, told the (range press), "the private Iraqi banks did not take the right aquamarine because their capital of their deposits", "this is a strange situation because the opposite is imposed, and this thing has been imposed because of market management, and prevailing laws so far."
Little trouble maker, "the private banks are still experiencing stagnation and governmental orientation and attention because it is a real partner in developing the economy, maintaining financial and monetary policy of the country" and that "through the launch of public deposits have relished in medium to large investment projects to participate in building Iraq."
Chalabi: node private banks lies in the Banking Act
But Board member of the Association of private banks, Adnan Chalabi seems optimistic because the private banks and capital expansion of its network in Iraq, despite the need to amend the Banking Act, which is held from the development of their own.
Chalabi says in an interview (press term), the total capital of private banks rose from $ 30 million in 2004 and $ 600 million the end of 2014, the exception of its Arabic and foreign bank branches operating in Iraq. "
Chalabi adds that "the number of private banks operating in Iraq rose from 17 in 2004 to 31 to the end of 2014, the number of branches has increased, while in Baghdad and other governorates from 100 to more than 600 competed in the number and level of services, bank branches and good government."
Chalabi, explains that "private banks prior to government counterparts in the level of services and the use of modern technologies, and link the branches of public administrations with modern communication devices to speed up transactions and strengthening oversight and supervision on the other hand, many of them also issued a global credit cards visa card or master card and others, and some have installed devices for cash payment in airports and tourist complexes, commercial and major hotels."
And Board member of the Association of private banks, that "Islamic banking has evolved in Iraq, rising from one founded in 1993, eight", says that "the law regulating its forthcoming towards investments and Murabaha on in accordance with the Islamic Sharia."
And Voyager Chalabi, that node private banks lies in the Banking Act, which is still under discussion of the amendment ", and that" the survival of that law without amendment cause serious problems for private banks that blocked the most basic rights in the transactions as investment and accepting deposits of Government to move its work and the country's economy. "
Advisor: the Government is considering several projects to support banks
In turn, says the Cabinet Adviser for Economic Affairs, Abdel Hussein Al-Anbuge, told the (range press), "the Iraqi Government cannot ignore the role of private banks in the economy and boost investment and growth," and shows that "the Government is considering more than one project to support private banks."
Adds General cried, that those "projects deposit Bill, and a recommendation for a State financial deposits in private banks," and "it is contributing to the strengthening of the infrastructure of private banks and to financial and economic challenges facing the country."
The Iraqi Central Bank, revealed (19 March 2015) that a number of private banks reluctant in its work during the past period, as attributed because of reluctance not to pay contractors and their clients as a result of "liquidity", pledged to return the funds dealing with reluctant private banks through "legal reserve".
According to specialists, the Banking Act 2004 is a "node" that without the private banks, due to restricted freedom and State control of the nation's development capabilities and seeking to subject financial institutions to political influence, and try to undermine their independence, led to stagnation of the Iraqi banking sector and the country to which an international classification by the competent institutions and, thus, could not of any banks, governmental or private, for any international classification, the weaker its role in foreign relations.
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