International banks looking to Iraq's desire mixed with fear

26/07/2013 11:30


Says "مايانك owner" bank manager "Citibank" in Jordan and Iraq, we look at Iraq as larger goal Next, he adds, "we see in Iraq giant is preparing to advance," but that vision and appetite of international banks to enter Iraq Eekphaa political tension and deteriorating security


BAGHDAD / obelisk: show global banks, including "Citibank" and "Standard Chartered" willingness to find a foothold in Iraq, but that this desire is often hit by several negative factors in the country experiencing political عراكا and sustained security tensions.

With tens of millions of potential customers who have only a few of them bank accounts, it has become Iraq represents an ambitious target of banking institutions, particularly that the Iraqis are now looking to more banking services that are available to them.

However, the long-standing laws, and the majority of banks controlled by the government, and weak infrastructure for this sector, in addition to a huge number of other obstacles كالصراع the ongoing political and deteriorating security situation, make the banking activity in the country is not guaranteed results.

A Western diplomat says for "Agence France Presse," that "it is very likely that Iraq is a rich market for the banking business."

He returned to talk about the Iraqi market during the past few weeks after starting the major banks, including "Citibank" and "Chartered Stnadrd" of moving in an attempt to consolidate its presence in Iraq.

He says the "owner مايانك", Director of the bank, "Citibank" in Jordan and Iraq, told AFP, "We look at Iraq as the next larger goal," adding, "We see in Iraq preparing for the advancement of giant."

"We consider ourselves among the top candidates, and we want to have the priority."



The bank will "Citibank" in the beginning to serve existing customers, who are working within the energy companies operating in the oil-rich fields.

But in the long term, the multinational bank will seek to move to the commercial banking business and service, although no timetable has not put in place until now.



He holds "Citibank" great hopes for Iraq, which economists expect the bank that has a population of 50 million to the economy worth about $ ترليوني by 2050.

The latter figure represents 15 times the current capacity of the economy, and roughly equivalent to the size of India's economy.

With the development of the sector, to become full banking services are required, since the Iraqis are currently limited opportunities in obtaining loans, insurance, credit cards, mortgages and other services.

The owner shows optimism about the potential of the banking sector in Iraq, waving fundamental obstacles to the development of this sector.



At a time in which it decided "Citibank" to open an office in Iraq last month, the bank "HSBC" announced later that he was withdrawing from the bank, "Dar es Salaam" Local, which owns 70% of its shares.

The spokesman said, "HSBC" that "at this stage we can not provide more details about the process of change and timing."



However, diplomats and analysts pointed to a number of difficulties including the lack of modern systems to give Iraqis confidence in the banking process.

Even Iraqis who have bank accounts, they are not able to use an ATM or bank services via the Internet or even the ability to access their accounts from different branches of the same bank.

Iraqi banks issued some credit cards, but there are no places in the Iraqi market to accept to deal with it.



A Western diplomat says that the conditions are not ripe to engage in individual banking services.

And companies often complain that local banks unwilling to lend, or it demanding assurances expensive and unacceptable.

According to World Bank estimates, the Iraqi bank credit amounted to less than 10% of GDP in 2010.

For comparison this figure was about 55 percent in the rest of the Middle East.

He says Thamer Ghadbaan, head of the advisers of the prime minister "must avoid the accumulation of cash within the government banks, but the use of funds for lending in order to be part of the system of the private sector."

Huffy adds that required "better technology, as well as reductions in processing times and paperwork and staffing levels, and there is also a need to change the attitude toward customers."

He explained that the bank's employees do not provide them with the service but the situation on the contrary, he said, adding "they must attract customers and not push them out."

 

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