Private banks in Iraq .. Parasites and closed places without credit

Posted on 2019-04-23 by sotaliraq


It seems that some of the private banks in Iraq are still far from the banking business known in all countries of the world to be only interfaces to live on third parties to obtain large financial profits.

While these banks have been away from the main task related to credit work and to be places like military barracks closed most of the time guarded by a number of guards, and to give to citizens as private banks have nothing to do with banking.
Parliamentary economy: a place of extortion and depletion of the currency

"Some private banks have turned into a place of extortion and exhaustion of the hard currency in the currency auction," said Nada Shaker Jawdat, a member of the economic and parliamentary investment committee. "There are no real policies for the work of these banks to achieve the maximum benefit of banking work in construction. Investment and reconstruction as is the case in most countries of the world. "

"Most countries in the world where private banks are the main pillar in the areas of reconstruction and investment in several sectors, but in Iraq, we find banks are far from these priorities and we find no use in the field of reconstruction in foreign policy to find no explanation by the authorities Follow up the work of those banks. "

"The basis and essence of the imbalance comes from the affiliations and loyalties of the country, in addition to the absence of supervision and the severe punishment of the abusive parties, and they all played a negative role in the performance of private banks."


Economic: the contribution of banks does not exceed 8%

The economist Hilal Tahan said in an interview for Alsumaria News that "the private banks in Iraq do not exercise credit work in Iraq correctly, and become a group of banks exploit the auction of the Central Bank and buy Treasury remittances which is a fake profits and not productive because there is no investment or That these banks grant loans to citizens at high prices and therefore their impact on development is very few.

"The total number of these banks, amounting to about 32 banks and even government, the proportion of their contribution to development or GDP is between 8 to 10%, while the contribution of banks in the UAE between 28 to 30% of GDP.

Economist: Some banks are just banking offices

For his part, says economic expert Dhargham Mohammed Ali in an interview for Alsumaria Yenoz that "a lot of private banks away from credit work because of the weak return from working with low capital and a few deposits and working only within the benefit of its share of the auction of the Central Bank of Iraq, which away from the jurisdiction of banking And makes it closer to the banking offices. "

"The credit market in Iraq is a fertile environment for banking work in Iraq. The supply of credit is much less than demand, but the lack of seriousness of banks in the exercise of banking competencies led to a decline in the reputation of private banks and limited to a limited number can be described as active with the decline performance of the rest.

"Although the Iraqi Central Bank issued a set of instructions to activate its work, such as reducing the mandatory reserve of deposits and obliging them to raise their capital, these measures did not find a clear positive echo from these banks and still constitute a ceiling not more than 10 to 15 percent of the size of bank deposits and not more than 10 Percent of the domestic credit market. "


Citizens: parasitic banks

"It is rare to see civil banks in Iraq fully functioning," said Hussain Mohammed al-Hassani in an interview with Alsumaria News. "Citizens are reluctant to deal with these banks as unsecured banks and to live on others, describing them as" parasitic. " "Most citizens do not deal with private banks because they are often in doubt about the possibility of their survival," Hassani said.

For his part, citizen Saad Mohammed said in an interview with Alsumaria News that "most of the private banks in Iraq more money than banks are practicing banking work."

"He pointed out that" the capital of these banks are few and can not carry out their banking work as grants of loans or filing, and called on the Central Bank to merge these banks to be able to work banking like other banks in neighboring countries. "

It is noteworthy that Prime Minister Adel Abdul-Mahdi said during his attendance at the meeting of the recent construction alliance that we import goods from Lebanon, which is capable, despite its smallness, because its banking system is developed to allow financing projects and the July war of the Zionist entity, banks were able to rebuild all the buildings destroyed in Lebanon, The Lebanese one penny for reconstruction but the banks are strong and the crisis has turned to completion, so the banks of development wheel must pay attention to them.


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