November 20, 2023 Last updated: November 20, 2023
Al-Independent/ - The Iraqi government attaches great importance to reforming the government banking sector, which dominates about 85 percent of the investments in this vital sector.
Advisor to the Prime Minister for Financial Affairs, Mazhar Muhammad Saleh, believes that reforming the government banking sector and returning it to work on the basis of efficiency and high competitiveness is the main goal of financial reform that the government seeks within the framework of a broad program of economic and institutional reform and building a modern banking market in accordance with the requirements of the Constitution.
The Iraqi government banking sector suffers from a heavy legacy as a result of its faltering for more than four decades of instability in the face of the progress that has afflicted banking in the world.
Iraqi banking reform plans face difficult obstacles for several reasons, including:
Functional slackness and incomplete government bank data.
Problems in the budgets of government banks, with accumulations dating back a long time.
Prohibiting global dealings with these banks due to sanctions on some procedures that took place before 2003.
The difficulty of establishing a technological banking system that enables them to develop.
Banking expert Mahmoud Dagher believes that reforming government banks is one of the most difficult tasks, due to these challenges, in addition to the difficulty of changing ownership, improving the performance of employees, and establishing the bank system.
He points out that the bank system is a modern banking system, through which all branches are able to communicate and exchange information and restrictions with the center.
Dagher concludes that reforming Iraqi government banks requires making great efforts and taking decisive measures to overcome the challenges facing it and achieve the desired goal of this reform.
Prospects for Iraqi banking reform
Iraqi banking reform can achieve many gains, the most important of which are:
Strengthening financial stability in the country.
Improving the performance of the banking sector and increasing its ability to provide banking services to citizens and companies.
Attracting foreign investments to Iraq.
Achieving these gains requires working to address the challenges facing Iraqi banking reform, by taking the following measures:
Carrying out structural reforms in government banks, including changing ownership, improving employee performance, and establishing a banking system.
Strengthening cooperation between the government banking sector and the private banking sector.
Encouraging investment in the Iraqi banking sector.
If the Iraqi government is able to take these measures, Iraqi banking reform will play an important role in strengthening the Iraqi economy and achieving sustainable development.