Economic analysts: to increase the bank's capital will contribute to the development of the banking sector

Author: bian5 on: Tuesday 07/16/2013 01:13 PM


Source: Baghdad 2 / Report




BAGHDAD / WAP / Report: Abdul Ghani al-Saidi

Committed the Central Bank of Iraq, which is the only body responsible for the movement of the banking sector in Iraq's banking sector to raise capital funds to more than 250 billion dinars, as a condition of responding to the requirements of construction and reconstruction and development.

He said economic analyst Abdul Rahman al-Mashhadani that "capital increase both banks (government or private) will contribute to the development of the Iraqi banking sector and work to increase banking services granted to citizens."

Mashhadani said news agency Baghdad International / WAP / Tuesday, said that "increasing the capital of banks is a matter of necessary and important because Iraqi banks remains their capital very few compared to banks neighboring countries, as the bank-Orabi in Jordan budget three times the budget of the Jordanian government, so we have must work to increase the capital of state banks to increase banking services provided to citizens. "

He added, "The private banks (civil) and the government in Iraq with few capital except Rashid and Rafidain bank and the Trade Bank of Iraq is of capital as a result of the volume of transactions carried out by the banking inside and outside Iraq."

He pointed out, "The real problem in the banking sector is not to increase capital for banks only through deposits that are placed inside the banks and the profits that are achievable, but does not have Jereh sufficient to provide banking services to the citizens, so it even if the increase the bank's capital will remain the banking sector What is it. "

And, said, "All banks increase their capital during this year to 250 billion Iraqi dinars, but despite this projected increase banking services remain few."

He continued, "concerned with the economic and banking sector is optimistic about an increase of capital, unless accompanied by an objective study to develop the granting of banking services to citizens."

The economic analyst Hatim Alboati, that "the economic process in Iraq is determined by three main factors, the first capital increase because it will contribute to the development of the economy in Iraq and thus will work on the development of the banking sector," he said.

Added Alboati to Baghdad International News Agency / WAP / Tuesday, said that "availability of capital increase and raw materials as well as labor would seek these three factors on the development of the sectors of the economy and the bank, and most important the suffering of the Iraqi economy is the lack of capital."

He went on to say, "as provide an increase in banks' capital in loans will be increased which will feed him and agricultural industrialists and entrepreneurs and companies, so the most important the suffering of the Iraqi economy is the lack of capital banks were government or private."

He pointed out that the government should work to increase the capital of banks in order to increase banking services provided to citizens. "

For his part, economic analyst Maytham Laibi, that "the most important processes that lead to increased corporate and project finance is to increase the capital of banks have financed through loans and banking services that are offered."

He said Laibi news agency Baghdad International / WAP / Tuesday, said that "banks in Iraq does not have a great incentive to finance projects and private companies, and more acts of these banks are businesses, through the purchase of الحولات as well as finance companies operating sector of trade, but this Thread did not have a real contribution to increasing local and foreign investment in Iraq. "

He added, "The Iraqi banks operate in accordance with the market economy and are looking for a profit, as it is looking for areas that provide them the most profit and least risk for investment."

He pointed out, that "there are structural factors that prevent the movement of capital in the banks, which in turn works to increase capital and investment in Iraq."

And, said the "banking system in Iraq encountered many obstacles, including that he is still works in administrative primitive ways far from the global banking technological development, as well as non-use of modern banking, which prompted the failure of Iraq to the world in the banking sector."

For his part, the deputy governor of the Central Bank of the previous appearance of Mohammed Saleh said that "the Iraqi banks in the event of increasing the size of their capital will help the Government to implement its investment projects through loans, cash or credit."

Saleh told the news agency Baghdad International / WAP / Tuesday, that "the number of private banks too big amounted to more than 37 banks, but still their activity Financial limited did not constitute either (10%) of the activity of the banking market in Iraq, the fact that the dominance of state banks in the disbursement of funds for the purpose of implementation of the projects. "

He added, "The government capital is very large and depends on the annual oil revenues, which constitute a very high amounts of cash."

He continued, that "whenever the big banks' capital as the ability to credit and loans better."


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