Private banks Walid crawling need to take care of the state

08/02/2014
Since the U.S. invasion in 2003, Iraq formally adopted a free market economy and so the curtain comes down on the economy Alawamra decades of central planning and bureaucratic, as is assumed.

But after more than a decade continues to dominate the state vital economic sectors. Among these sectors, the banking activity where state banks still account for 85 percent of balances, along with Astitharha majority of transactions, transfers, deposits and loans.

Despite allowing the private sector to enter the banking business, the relationship between the state and private banks remained equivocal relation pass cases of the tide.

The government has sought to establish this relationship on the basis of sound and the advancement of the private banks, among other measures.

For example, earlier this year the government has prepared a bill to bank deposits, which he described economic analysts Banaklh quality in the work of private banks.

And recently announced the CBI custody of raising money Warka Bank Ahli after two years of imposed because of the financial bust.
Warka Bank was one of the largest private banks by about 130 branches in Iraq and other branches abroad and the first between these banks in the adoption of electronic accounting.

The earlier decision to lift the guardianship Warka Bank for relief in the sector of private banks generally also said Executive Director of the Association of Iraqi banks ultra-Nasser Hassan, stressing that the decision will restore confidence in the banking sector after it vibrates to impose trusteeship Warka Bank and before the Bank of Basra.

The CBI has prepared a phrase controls to work the private banks which shall not be less capital for private banks 250 billion Iraqi dinars.

But the executive director of the Association of Iraqi banks ultra-Nasser Hassan noted that the capital of some banks has become greater than the value of their deposits, calling these banks to encourage citizens to save and not consumption.

Hassan pointed to the paradox in the low shares of private banks in the securities markets, even though they are all successful banks operate at a profit, expressing the hope that the introduction of a mechanism change this anomaly with the opening of Erbil and Basra market for securities, for example.

He stressed member of the parliamentary finance committee for the coalition of state law, Abdul Hussein al-Yasiri that he needs the Iraqi banking sector is a guarantee deposit law, noting that the law of discussion in Parliament and includes the establishment of a government company or a private reassure depositors that their money is guaranteed as well as syndicated loans concerted efforts multiple banks, saying that this practice is also absent from the Iraqi banking.

Former adviser to the CBI the appearance of Mohammed Saleh considered that the private banking sector in Iraq is still in its infancy and therefore need to take care of the state, which is still the largest owner in the Iraqi economy.

The International Monetary Fund said in its latest report released by the Iraqi banking system that he expected the central bank to make greater efforts to develop the tools of monetary policy and strengthen oversight and accelerate the restructuring of the sector.


http://www.iraqhurr.org/content/article/25257569.html