The banking sector between the jaws of foreign capital

9/26/2016 0:00

Mohammed Sharif Abu Mayssam
Overthrew the fiscal deficit, which involved a handful of private banks, the status of the trust that has worked to draw features and great difficulty Association of private banks and the central bank about the situation of lack of confidence resulting from the stage impromptu decisions in the years of authoritarian rule that toppled all attempts to draw private banking culture in mind features Iraqi collective as well as the repercussions of the conditions that followed the years after the change.

The implications of this deficit resulted in the absence of the ability to fulfill the rights of depositors by these banks, prompting some of these depositors to demonstrations and gatherings in front of a bank administration building to demand their money on the impact of the central bank's decision to put the custody of the bank and try to reassure depositors to pay their money from the legal reserve of 15 percent of the value of deposits.

Some of those concerned with private banks justified what happened as a result of the case of delays in the payment of contractors who financed their loans from these banks, making contractors as Mstlven of these banks and the debtors are unable to fulfill payment of the debt, as well as what is said about the benefits of these banks owed by the Central Bank of Kurdistan branch, which is the other loiter in the fulfillment of its obligations in nearly a year due to the financial crisis suffered by the region.

Furthermore, the low real estate prices, the investor or dependent as collateral for loans granted by the contractors was unable to pay .. Whatever the justifications for such cases and replication reveals a flaw in the nature of the banking system in the country in general and in private banks in particular.

The bottom line: the case of trust between the public and the private banks exposed to something like a tremor, which blew up all the features of construction over the past years, Valsamah University, as they say, as it was hit by the pan private banks reputation due to the repercussions of what happened recently with that bank, which means the initiation of a new from scratch to rebuild the trust that you need, starting to lift the rubble of demolition and then work to establish the foundations of a solid to build structures such confidence that you need to concrete pieces of hard work and support the media and advertising and effective marketing of banking services next to the critical importance of a law that guarantees public deposits whereby the founding of the company to guarantee bank deposits.

Otherwise this confidence will remain rubble of rubble remain private banks and shops to sell the dollar and financial speculation without a real role in the economic development processes and in the macro-economic scene, which moves rapidly toward a market mechanism with the support of international financial institutions.

Based on the above, the issue of the return of trust between the public and private banks will need a long time, serious and sincere efforts to invest rings media banking marketing and others to build new bridges founded on the fulfillment of the rights of depositors and raise credit rates and give up a quick profit and investment concepts in the public primarily through the banking marketing events.

And because the market economy can not be performed without the banking sector as well, the goal to restore confidence, which will take a long time, perhaps Sttakllah transitions rapidly toward a market economy, according to the government program announced, according to the requirements creditors, particularly the Bank and the International Monetary Fund, which means that the arena will be free from the private banking sector at this time, and therefore, the opportunity will be available in front of the government banking sector to take the initiative, especially since the public still trust in government institutions as well as the urgent need to move the storehouse of monetary mass estimated by the central bank at about 10 percent of the trading bloc's 40 trillion dinars .. will be able government banking sector to take over this task away from the bureaucracy?

The rapid transition towards a market economy and reliance on local elements to create a real development in the reality of the current economic Koaqana require the need for capital international companies in harmony with the desires and its quest to dominate the local market as part of the Middle East market, which means the inevitable for a global banking Iraqi yard conjunction with this shift which is witnessing a throwback to the private banking sector and the weakness of the government banking sector, this is the real goal that established him those that increase the requirements, restrictions on the national economy through the preset with the implications of lower oil prices, the debt program.

The banks, which for a longer windows for companies that govern the world in this confusion witnessed by market relations and the economic mess is not a win-win situation for the country, because they simply will monopolize the market

The movement of funds and Tajir to their advantage in the sense that it devour events that spoilers do not want the government in the banking sector and Agthon behind a quick profit at the private banking sector promotion now.

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