Activation of private banks
27/1/2018 12:00 am
Our private banks are still limited in terms of the products they provide, with a capital of only 6% of the cash deposited in government banks (Rafidain, Rashid and TBI).
The private banks ranged in place compared to the Iraqi Bank of Commerce, both in terms of modernization or profits achieved by the (900 billion dinars for the year 2017), and Rafidain and Rashid, we hope after restructuring to achieve more modernization and profits.
The progress and prosperity of private banks not to invest in the auction of currency, there is no doubt that through this window, it earns good profits, but we did not see the results of these profits in the expansion of banking products, reflected in the internal financing of the national production sectors.
Foreign investments are still futile at the local level, which requires the search for local development outlets through the return of profits resulting from the auction of currency and tempting legislation guaranteeing its safety as legitimate and not involved in suspicions of money laundering.
It is necessary to provide opportunities and activities by moving the monetary bloc in Mesopotamia and Rasheed by holding partnerships with private or foreign banks in order to revive the thousands of stagnant, failed and losing projects in the public or private sectors.
When the activity of any local bank is guaranteed by its public and private sectors, the lost son returns to the yard to invest or buy under the investment law and goes into the development of products and partnerships by participating in the credit risk, which can be supported by insurance or banks (Rafidain, Rasheed and / or TBI) .
In addition, the legislation is up-to-date and guarantor is vital to reduce the hotbeds of corruption in banks, which requires confronting them with e-governance tested at the Iraqi Bank for Trade and facing the risks of insurance through three public companies and 33 private companies ready.
Therefore, the activation of the National Bank through the drying of the currency window; prompt the active banks to cooperate with government banks with real partnerships in the financing of projects suspended in productive sectors; and supported by insurance companies and laws to keep up with the success of investment, then the window selling the transaction does not pay for investment in general but works in the opposite direction.
This trend provides the appropriate ground for the development of the relevant bodies in all its mechanisms of work, where the compressor component through the principle of measuring things with their results and feasibility, which drives research centers and universities to develop their curricula and modernize their programs to support the productive development.