Including loans and interest rates.. (Aware) opens ten files with the director of the Rafidain Bank
Investigations and Reports 09-13-2022, 11:07
The Rafidain Bank identified, today, Tuesday,
7 types of advances and loans and the conditions for granting them, and while referring to the
move to reinstate the granting of advances electronically and automating banking operations, he sent a message to the citizens.
Implementation of the electronic banking system
The director of the bank, Abdul Hassan Jamal, said during an interview with the Iraqi News Agency (INA), that
"the bank is continuing to complete the technical and legal requirements to re-work the electronic grants for advances, and
it seeks to complete the project of implementing the electronic banking system, which will contribute to the automation of all banking operations to provide the best services to its customers.
Lending Initiative Jamal added that
"the Central Bank of Iraq launched the lending initiative,
which contributed to providing liquidity to private banks,
through which some private banks launched the advances initiative for individuals,
in addition to the liquidity available at those banks, through which they finance some investment projects and personal loans for various segments of society.". He pointed out that
"the Central Bank is the official body that carries out the process of supervising banking operations that take place in banks."
Bank loans, and he added:
"It is no secret to everyone that the Rafidain Bank is one of the largest banks that supports housing projects based on the government's directions and the market's need, as
the bank contributed to supporting the Basmaya housing project at the government level, in addition to other residential investment projects." He continued:
"With regard to supporting small projects, the bank grants loans to
support small projects in various sectors and with measures that
contribute to supporting this sector and
providing decent livelihoods for many segments of society." He stressed that
"the bank takes into account all segments of society and has the largest base of effective banking products that not only serve the segment of employees, retirees and the security forces, as
the bank provides loans to citizens in general for various purposes (housing, building, repair, buying a car, and small projects),"
In addition to loans and advances to other segments of them (scientific research loans, operational loans, including kindergartens, private schools and universities, as well as loans for financing scientific research...etc.”
Interest rates on loans
Regarding the interest rate on loans, Jamal explained,
"It cannot be certain that the interest rate on loans is high compared to other countries, as the concept of lending in all countries of the world is divided into two basic principles:
1- Supply and demand for the monetary mass and competition in the banking sector.
2- The rate of inflation in the country, and as it is known to all that the
global central banks are working to control the rates of inflation by raising or lowering interest rates on lending and borrowing and according to the situation of each country. He continued,
"Our bank sought to reduce the interest to the minimum for the loans granted," noting that
"the Rafidain Bank and the Central Bank are in the process of attracting the cash mass of individuals and introducing it to the banking sector." Jamal:
"The criteria that are adopted in granting loans are as follows:-
1- Studying the borrower’s reputation and financial solvency.”
2- Studying the official documents of the company and its founders, taking into account the company’s capital.
3- Studying and evaluating the guarantees provided.
4- Referring the credit file to the credit department to study the feasibility of the project
5- Referring the file to the risk department for a risk assessment The project". He continued:
"With regard to determining the interest rate, consideration is given to studying the
market situation and
competing banks, as well as the size of
expenses compared to revenues,
so that in light of this, the
interest rate can be determined."
Encouraging citizens to deposit their money with the bank
On encouraging citizens to deposit their money with the bank, Jamal said:
"The bank seeks to encourage customers to transfer their money to banks instead of storing it at home, through the
high interest rates it grants to customers on savings accounts and deposits, as well as
offering various banking products that are granted to customers.".
Deposit Guarantee Company Project The Director of Al-Rafidain Bank said:
"The Deposit Insurance Company is one of the companies that preserve the public's money, knowing that the bank has contributed to the establishment of the company, as the
borrowing process depends on the available funds (liquidity) in the banking sector." He added:
"As it is known to everyone that increasing the confidence of individuals in the banking sector is associated with the extent to which they can obtain their money, and that the company contributes to this effectively. Therefore, the
availability of funds in the banking sector contributes to managing the cash wheel that begins with customers' deposits and ends with the process of operating those funds before Banks (lending that money)."
Financing strategic and economic projects. Jamal adds:
"The Bank has a clear strategic vision and a tight mechanism in the field of financing strategic and economic projects,
where it is not hidden from everyone the size of the projects that the Bank contributed to financing and in various sectors, including residential, industrial and operational...etc." He continued:
"Whereas the bank does not look at the project from the profitability side only,
but also looks at the
economic side of the project and its
capabilities to employ manpower and
support the national product, as
Rafidain Bank is one of the reputable government banks that always strives to provide the best services in all sectors."
The banking sector in Iraq. Jamal continues:
"Through our assessment of the reality of the Iraqi banking sector,
although most private banks focus on banking and financial transfer activities,
we note that the sector is
capable of growth and development
if the necessary ingredients are provided for this,
which calls for concerted government and civil efforts. To provide the infrastructure necessary for the transformation to
automate all banking operations and to provide
automated teller machines (ATMs) and
direct points of sale (POS) in shopping centers to
facilitate the use of electronic cards by the public.” He pointed out that
"this will contribute to increasing cash in banks and thus
increasing investment opportunities, and will also contribute to
preserving citizens' money and
reducing high-risk financial operations (financial fraud, money laundering and terrorist financing)." He pointed out that
"the banks provide a safe environment for the circulation of cash, due to the presence of controls and instructions that govern all aspects of banking work," stressing that
"the Rafidain Bank seeks through re-examination of banking instructions to facilitate lending to all segments of society and to finance strategic projects of economic importance."
Implementation of Governance Standards
On the application of governance standards and comparing them with neighboring countries, Jamal emphasized," He added,
"As we compare Iraq with neighboring countries in the field of governance, we must mention that there are many applicable areas of optimal governance in all countries, not only in Iraq, as
achieving optimal application requires continuous improvement of governance procedures in the banking sector and all other institutions.".