The interbank market rise in the banking sector

3/3/2015 0:00

Separate administration for capital strengthens its presence
BAGHDAD - Mustafa al-Hashemi

Inter-bank market plays an active role in the economy of countries, but are limited to activity between the Iraqi private banks requires strengthening of trust between central and local government and private banks, both to be activated.

Market represents between banks (inter -bank market) one part of the monetary policy of the Central Bank which is taken: the ends aimed at providing liquidity and determine the amount of interest on lending rate.

The activation of the role of this market among private banks of the important things that will determine the interest rate on amounts lending rates and provide liquidity to them.


Provide liquidity

And see the specialist banking affairs just Naimi said market system between banks in Iraq exists between the state-owned banks for the purpose of providing liquidity for loans in large amounts, while he notes dealing with barely a mention among private banks.

Al-Naimi said in a statement (morning): The banking sector needs to be the implementation of this system and expanded to its importance in the financial sector, noting the need to strengthen the Iraqi banks relationship between them (government and private) on the one hand and with the Central Bank on the other hand.




Coordination and understanding

He noted the need for coordination and understanding between local banks and the central bank because it will impact on the performance of the banking sector in general, which should take an active role in the current stage.






Restructuring banks

He stressed the importance of separating the administration for capital and restructure government banks because it will contribute greatly to activate this market needed by the banking sector, which requires mutual trust between all the banks by providing data transactions borrowers large amounts of data relating to banking operations and activities carried out by those banks, along with Central Bank of Iraq.

He explained that the Central Bank's role is to supervise and control the performance of this market and to maintain price stability.

Expand the market

And Rai al-Naimi said the expansion of the deal in this market would improve the conditions of the banks to apply the criteria of transparency, thus contributing to achieving the best results in the banking system in general.




Banking performance

The academic economist, Dr. Majid Baidhani has pointed out in an earlier statement the "morning" that failure to activate this system will reflect negatively on banking performance, which is still waiting for his chance to integrate into the economic process.




The advancement of economies

He reflected the importance of the existence of this market among private banks to enable the economy to rise strongly, because emerging economies Tterczaaly activity and effectiveness of the banks in the granting of credit and the launch of various loans to small or medium-sized projects that achieve a profit as well as improving the discipline of prices in the market.

Analysts say that maintaining the stability of the currency exchange also comes through the activation of inter-bank market activity.

This underlines the need for the country at this stage to strengthen the bonds of trust between all the banks and the Central Bank for the development of the reality of work and move the economy forward.


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