Iraqi Banking Suffers Civil Government Neglect
|August 24, 2014||Filled under Iraqi Banking News|
Iraqi Banking News –
Private banks in Iraq suffer from lack of interest by the government, resulting in the emergence of many problems between them and the government banks on the one hand and between them and the Ministry of Finance as a result of the prohibition of state institutions deal with private banks.
Said the appearance of Mohammed Saleh, deputy governor of the Central Bank of Iraq’s former The existing problems in the relationship between the government and private banks, and between the government and private banks led to the fragmentation of the banking market, noting in a statement to the island revealed that the State failed transactions on the government banks only, and did not cooperate with the private banks.
Saleh added that there are negative effects many due to this fact, including the weakening of the banking market and make it work incorrectly, as it broke out problems between Iraqi banks because all government departments refuse to receive the checks issued by private banks, and even when one of these banks to repay its toll, the the check must be issued from the Rafidain Bank government.
Explained the former official that the Banking Act No. 94 of 2004 class of private banks as a commercial and not a development, while the government banks are banks, a comprehensive exercise banking development and to engage in industrial investments, agricultural and others, while not allowed for private banks to do so in accordance with Article 28 of the same law, pointing out that the private banks the right to practice the process of buying the stock and selling it.
Salih stressed that the banking law does not fit with the environment Iraqi banking, and needs to be adjusted to allow for private banks to exercise commercial matters, provided that it keeps the liquidity of a physical high, noting that Arab banks operating in Iraq do not have the capital, and exercise all the activities undertaken by Iraqi banks, and such a big problem, he said.
Deprivation of opportunities, said CEO of the Association of private banks Abdul Aziz Hassoun said that although the private banks licensed from the presence of the state and operates under the banking system of Iraq, but it is deprived of the many job opportunities and increase its capital, and lacks the development of its finances and management, and as a result of the position of the government in Baghdad towards it.
Explained Hassoun of the island revealed that the Association of private banks has b ‘ extraordinary efforts’ to urge the Iraqi government, specifically the Ministry of Finance, to allow some banks that choose to deal with government institutions, but to no avail remember. Pointed out that private banks are subject to the supervision of the Central Bank of Iraq, there is no fear that the cause of any defect of the organs of government, He said Hassoun that the banking sector needs to stabilize the environment in which it operates, and the creation of trust between him and the citizen, in addition to the need to make a legislative revolution to improve its performance.
On the other hand, refers banking expert Ali al-Mashhadani that the number of government banks has seven acquires 91% of the revenue sector However, the work is not at the required level and needs to be development effort significantly, indicating that the volume of deposits in banks, the government has increased this year to sixty billion dollars.
Radical reform and pointed Mashhadani that the Iraqi banking system in need of radical reform because of the traditional systems, given the lack of interest in government banks own which is detrimental to the sector as a whole. between the speaker that the Iraqis who have banking activities and external links do not prefer to deal with Iraqi banks, whether governmental or private, and choose to deal with foreign banks that have branches in Iraq, and because of this preference to ease transactions with those of foreign banks and the speed of delivery of services.
Pointed banking expert to the Rasheed Bank, the government has a budget of 16 billion dollars, but there are questions about the size of his accomplishments the land of reality, to conclude that ‘the government to involve private banks in its financial transactions in order to facilitate the investment process, and activate Movement of banking in the country.
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