The banking sector .. actually required reform

6/13/2016 0:00

Mohammed Abdul Zahra al-Hindawi
Despite the acquisition of a larger area of ​​the banking landscape in Iraq, but the government banks are still facing a lot of challenges that have prevented the performance of their active role in the development of construction required in the country's process, especially with the intensification of the financial crisis and the government's efforts to meet the registered in the budget deficit through recourse to external borrowing and the issuance of bonds ..

Perhaps the bold step taken recently by the Cabinet and of exempting government banks managers an agricultural, industrial and Iraqi Trade and Rafidain Bank represents a new beginning to change the reality of these banks, which was over the past years - also confirms concerned sector Almsrvi- ineffective and even, some say it's been obstructive for some of the important steps that could increase the effectiveness of the banking sector, public and private, both .. this case Find a negative environment that has alienated the private sector banks to contribute to the investment process, as long as through private banks, owners complained of government banks dominance and lack of opportunity in front of them, as it deprived private banks of many of the privileges that he could get them, including bank transfers, because 90 percent of those remittances are the State-owned banks in the distribution ratio of (10% remaining) on ​​more than 50 banks waged, not to mention depriving private banks from dealing instruments certified, and such issues that will negatively affect the confidence of the citizen sector, private banks and resorting to government banks in financial dealings, although the banking services provided by these banks are lower than those offered by private sector banks .. here, I hope that my words understood as an attempt to undermine the general government banks or specialized as it is an invitation for the advancement of these banks to deal with some of the bureaucracy with the CBI initiative to grant the private sector a loan of $ 6 trillion Iraqi dinars to support industry, agriculture and housing sectors through granting citizens soft loans worth 50 million dinars maximum, and the bureaucracy caused by delaying the granting of loans to the beneficiaries, and perhaps this was one of the reasons that the Council of Ministers called for the inclusion of these banks reform process ..

The process of change is not necessarily to be the result of the existence of suspicions of corruption as promotes other, but because these managers have exhausted all out of parents visions and ideas of evolutionary and this in turn led to a state of relaxation and sag in performance with the absence and presence of follow-up and surveillance tightened by the Supreme departments at branches scattered across Iraq's banks, so find references to these branches lots of pictures negative that should not be present .. here it must be said that the desired reform process will not be completed by changing the senior leadership of the departments of government banks only, and that they represent an important first step in this direction, but is required to hold a comprehensive review of all the reality of government banks in Iraq, the details of the process , beginning on the restructuring and the placement of all activities performed by these banks to the electronic system, or what is known as automation, as we are still seeing a lot of banking business is going on according to the traditional systems of old paper which is causing so much delay in the completion of transactions of the citizens, especially those relating to the operations of deposit and withdrawal and get certified instruments and financial transfers and other .. this as well as the possibility of the application of incentives tempting for workers in the banking system and be based on the daily achievement and not about a lump, incentives would pay an employee to do more to improve the economic reality on the one hand effort, on the other hand contribute to the reduction of blackmail citizens and reduce red tape and periods of eating breakfast and tea.

The other thing that can refer to him here, is the need to open broad prospects for private sector banks that need the other to re-look at their performance, which is indicated by some of these banks are small shops mission is to engage in the daily auction the central bank and buy the dollar and then sell it in markets and achieve quick profits without exercising any banking operations have an impact on the national economy, so should private banks manage search for a suitable, such as resorting to the banking merger processors in order to strengthen the financial portfolio to her, and that is that would allow them to compete with the private banks year as part of the reform and opening-up policy pursued by the government to activate the banking performance in Iraq and activate it by about a year, which was enhanced with the consent of the Council of Ministers on the establishment of a specialized company to guarantee deposits with an initial capital of $ 100 billion dinars, the existence of such guarantors would the company that encourages the public to save rather than compactness phenomenon prevailing in Iraq because of a lack of confidence in the banking system in general Country.

Bottom line is that the process of banking reform will eventually lead to finding a sophisticated banking system represents a basic foundation for development and has the ability to compete with regional banks through the quality of services provided by the plurality of customers by supporting investment projects in various fields.


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