Institute seminar in the progress of development policies: Bankers call for banking reform and greater attention to the private sector

01/30/2014

The growth of the middle class is the solution

He concluded his remarks Hafiz confirm that the promised future of Iraq is directly linked to the creation of a growing middle class and economic reform and monetary and financial, and reconsider all traditional practices that weakened the strength and vitality of the economy driving Kalmward financial and other.

Picture: the reality of bank ale

And dwelt professional flour spoke World Bank consultant to restructure the Iraqi banks, an economist d. Majid picture of reality miserable for the banking sector of Iraq and the big problems that afflict, where consists of the banking system of 54 banks, including seven state banks, one of them an Islamic newly established, and there are 23 commercial banks special, of which 9 Islamic banks. There are also 15 branches of foreign banks. There are many institutions that do some banking, including 34 company money transfer, and nearly 200 foreign exchange company belonging to the banks or deal with the banks, with the company to ensure the loan company for project financing small and medium enterprises, with two companies for banking services and electronic smart card, in addition to nearly 800 Branch subsidiary banks and distributed to all the provinces of Iraq. He said the picture he and after the enactment of the Central Bank and the Banking Act of 2004, saw the banking reality a lot of variables, including interest rate liberalization and the abolition of credit schemes, and open the door to work for foreign banks, either through participation in local banks and the freeing of foreign exchange and the abolition of restrictions on the transfer of funds , except for the requirements of the law on combating money laundering and terrorism financing, and subdue all banks, including specialized banks into a single law means the commercial banking activity only.

Heavy legacy required restructuring
All of the banking system

He attributed the picture deterioration of the banking reality to the heavy legacy inherited by Iraq and led to the collapse of the Iraqi economy and the failure of the banking system as a result of war and siege, militarization and entangle banks, government relations external and domestic financial complex has resulted in those circumstances to the obvious weakness in the banking culture decline in international confidence and the decline of the role of banks in economic activity and development, and banking expert outlined a brief vision for reform of the banking system through restructuring State-owned banks, Rafidain and Rasheed, and specialized banks and the banking and credit controls in the Central Bank, as required by the reform process put appropriate regulations based on Basel. Suri added that in 2006, the signing of a Memorandum of Understanding between the Ministry of Finance and the Central Bank of Iraq, under the auspices of the International Monetary Fund and the World Bank and the U.S. Treasury Department, to achieve the program of restructuring the banking system in Iraq. Pursuant to the terms of a cross between Iraq and the International Monetary Fund, relating to the restructuring of the Iraqi state institutions included reconsidering the organizational structure and diagnose problems of financial, operational and regulatory faced by all government banks .. As well as the achievement of all matters relating to the principles of good governance, .. and the issuance of appropriate regulations by the central bank, to organize the work of the government and private banks, and re-examine laws related .. Accompanied by the activation of the role of the central bank in monitoring and supervising the work of banks, without distinction between public and private .. This requires the establishment of the Supreme Supervisory Committee to oversee the project to achieve the restructuring of banks, consisting of the Governor of the Central Bank and the Finance Minister and Chairman of the Audit Court.

Rationalization of banking management

The d. Suri said the aim of the restructuring is to strengthen the internal construction of the banks, and work on the foundations of good governance, and upgraded to the level of the international banking industry, and the activation of the role of banks in economic activity and the process of economic development .. In addition to the development and consolidation of international relations of the Iraqi banks .. And the development of banking culture, and change the thinking of the methodology employed in the banking industry in Iraq.
He pointed out that all the studies submitted by the consultants stressed that it can not achieve the principles of good governance, control and surveillance and immediate precautionary, by the banks and the supervisory authority, but using the banking system overall. .. He pointed to the absence of the real will and seriousness of change and restructuring, by all relevant authorities, the Central Bank, Ministry of Finance, Office of Financial Supervision, and senior management in the banks themselves .. Because of a holistic view and control the individual, bureaucracy and the majority of factional officials mentioned institutions and significant changes that took place in the leadership of the Central Bank, Ministry of Finance and the Office of Financial Supervision .. He pointed out that the achievement of the restructuring of the banking system in general, both governmental and private, requires procedures and continuous follow-up, by that, and despite the fact that the central bank and the banks some actions necessary authorities and highlighted the picture light on the importance of legal reform of the banking sector, adding that this would lead to improving the performance of Iraqi banks and improve its reputation local and global, but it will not work on activating its economic role, what did not make the necessary amendments in the Banking Act that are consistent with the requirements of the Iraqi economy is growing, and called for a distinction between the activity of banks on the basis of the goals established for it, and to identify areas of work in accordance with the requirements of stage the basis of commercial banks are actively banker and investment banks: determined work in the field of investment .. And Islamic banks: the investment banks operate according to Islamic law, and development banks which banks operate within the limits of the objectives of the economic policy of the state in the areas of productivity, in particular, especially the "industry and agriculture. Pointed out that the Banking Act did not specify the share of foreign capital invested in the Iraqi banking industry in total capital invested in the banks, did not give this right to the CBI or any other agency.

Import volume of 250 billion dollars
2013

Between the picture and that the banking system could not work out the implications of the prevailing economic activities, and the laws that govern the operation of banks .. Indicating that the volume of imports rose from nearly 9.6 billion dollars in 2003 to over 58 billion dollars in 2010, and to more than 64 billion dollars in 2011, and to 75.2 in 2012, and include the import of government and private services, which are on the rise, At the same time the money was invested by the government in 2003, and until the end of 2013 in government infrastructure projects, about 250 billion dollars. Sales of the Central Bank of the dollar through the auction of 6,108 billion dollars in 2004 to 33,992 billion dollars in 2009, and to 39.789 billion in 2011 to 48.519 billion U.S. dollars in 2012 to 53.1 billion dollars in 2013.

A tendency towards central and subjecting
Economy to political influence

He warned the picture of the political conflict in Iraq, and try to touch the independence of the central bank, will lead to action is thought right and applied illegally, not constitutional, in addition to the actions illogical right of banks, especially the private ones, has led to a great disservice to the reputation of Central Bank and the banks, internationally and domestically. . He pointed out that the incubator's core banking activity, activity is effective for the private sector, and in all spheres of economic activity, industry, agriculture, tourism, trade and services.

The weakness of the banking institution status
Iraqi internationally

Finally, expert Majid picture lecture by referring to it as a result of the political situation and security, and the weakness of the trend towards economic development, and the spread of financial and administrative corruption, and lack of application of the structural reform of state institutions, including the reform of the banking system, could not Iraq from obtaining any international classification, by relevant international institutions and, therefore, not able to any of the banks, not the government or private, to get any international classification, and this is what weakens its role in the international banking relationships.

D. The appearance of Mohammed Saleh:
Failed to restructure banks

In his intervention stressed economic expert, Dr. appearance of Mohammed Saleh, said that the project structuring banks failed for unknown reasons .. Indicating that the private banks trapping regulations and laws old and have no value and control .. Wondering Maalaqh banking market among themselves? The market for government Ataatkamil with the private market. As the instruments of the private banks is not acceptable to the government. These conditions led to a split within the market this split payment of capital to escape outside Iraq as a result of a lack of confidence, which in turn moved the short-term capital.

Government deposits is the largest

He pointed out that the deposits amounted to 67 trillion dinars 0.43 trillion, including the central government and the public sector, and this figure is up to the end of June of the previous year of 2013, which does not include government deposits with the Central Bank or the Development Fund for Iraq (DFI), either bank credit or ( loans) amounted to (29) Trliuna (80 per cent) of which the introduction of state banks.

Requirements to address the banking crisis

He suggested d. Appearance of Mohammed Saleh solutions to improve the banking reality in Iraq, noting that unless the law may be promulgated investment banks, must be to amend Article 28 to help the private banks and the granting of these banks loan encouragement to help them solve their problems accompanied by a law the government banks .. Saleh called on to form a company to guarantee deposits and the abolition of the Iraqi restrictions on the instruments issued by private banks and the creation of the Institute for the preparation of specialists monitors banking and banks subjected to the control of the Kurdistan region, as in the rest of Iraq with the banks need to think about the establishment of a High Commission for Banking Supervision.

Abdul-Aziz Hassoun: Application of Standards
International need a long time

The executive secretary of the Association of private banks Abdul Aziz Hassoun was his intervention is another in which he confirmed that if we want to apply international standards in banking fact is triggering so far but we need a long time in this area .. Indicating that the Iraqi banks does not need external hoods because they rely on cash handling. Hassoun said that private banks face more severe applications, the instructions of the conversion of foreign ended .. He noted that the restructuring of the banks was not real but was a re-reading some of the legal texts on the banks .. He called for the need to work style card that includes detailed information on each bank and the nature of his work.

Despite the difficulties banks grow

And between Hassoun that the banking system private faces pitfalls many years ago, and these bumps going on and did not stop, but nevertheless there are continued in the growing assets of these banks, and deposits increased by trillion dinars in 29 banks, calling to join other banks to the Association of Banks and the 32 banks, in order to strengthen the banking reality, explaining that the fiscal balance has it that gets the answers at the end.

Handal calls for the formation of a bank rally

When you open the door of discussion between Mr. Wadih Handal Chairman of Ashur International Bank said Salah fact the Iraqi banking, particularly private banks lies partly in the formation of a lobby banker compressor includes bankers and businessmen to follow up on this fact and push for the implementation of the Provisions of the laws relating to Balheiklh and providing the right environment and this is Through coordination with the Iraqi Central Bank and the World Bank.

The difficulty of separating ownership from management banks

Handal noted that the separation of ownership from management was not possible in the circumstances because the previous lack of separation would increase the capital .. He pointed out that a merger between the banks will not be forced but must find the appropriate conditions that include incentives, indicating that the banks have not experienced during previous periods because of the evolution of any significant restrictions on her and said d. Mehdi al-Hafez so that there banking crisis lead to handcuff performance, and called for the creation of a culture of banking and economic awareness must be developed and not static.

The absence of an international classification

He objected economic expert, a conciliator good on the view that the banks are not able to perform its role, pointing out that it is working under abnormal conditions, especially with regard to direct investment .. Explaining the lack of an international classification has a direct relationship Baalarac led to a lack of confidence in banks.
Mr. Haider Judy Bank of Dar es Salaam to the private banks, commercial banks, mostly in the international actors accountable Iraq.
And put some of the audience question about the changes in the banking reality after the withdrawal of Iraq from Chapter VII .. As called economic expert, Dr. Abdullah al-Bandar of the Investment Authority to benefit from the experiences of other countries with advanced experiences in the banking industry.
Speaking economic expert Behnam Elias Boutros Five-Year Plan for 2013 -2017 and the circumstances surrounding the preparation .. Indicating that a big job to do by the stakeholders in the preparation of this plan.

Annual plan for banks

Mr. Ali al-Husseini of Ashur International Bank to the absence of effective management between the government and private parties led to the absence of contact between the two .. He called to give a real role for bankers and reduce the role of the real owners .. Indicating the absence of a state of lack of clarity in the role of private banks in the market .. He expressed optimism about the improvement in the role of these banks provided adoption of annual plans and clear.
The economist said Abdalbagi satisfaction that the period of the Coalition Provisional Authority has seen the issuance of more than (100) is in different areas, but unfortunately did not find it performs amendments to these orders to make it fit with the new reality, indicating that the boards of directors of banks are still configurations unknown.

Participatory solutions between the parties concerned

The economic expert Asim Mohammed Saleh said that the necessary solutions to overcome the crisis, banks handled the outskirts of the Chairperson, explaining that these solutions lie in the three parties are the central bank and the Ministry of Finance and the banks, indicating that the central bank's policy is still blurry unclear since 200 so far. So to be clear of this policy in order to build a relationship between the two sides equal .. And the Ministry of Finance not to interfere in the policies of the banks .. Development banks have a successful experience in Iraq, a bank and industrial real estate and agriculture .. He called for the integration of these banks under unified management in order to be stronger and more effective.

Private banks and the many pressures

He added that private banks came under a lot of pressure was the lack of a mature investment environment and a political struggle In these circumstances, banks are seeking to maintain some of their money and this leads to creating a state of deflation.
He called Mr. Ali Shalabi from the Bank of the Tigris and Euphrates to find a compromise between the government and private banks based on the issuance of laws that guarantee the rights of private banks away from the dominance of the public banks and private banks to grant better space in the arena of financial and economic situation in the whole country.


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