***** Banking and financial system .. Where to?

02/13/2014

Writing and photography / Faris Al-Shammari

Continue the activities of organizations and professional bodies and government to discuss the economic landscape in all its details and deepen the dialogue by experts from the public, mixed and private sectors through working papers, studies and research indicate malfunction locations and the size of the challenges facing the path of the economic process in all sectors, particularly the financial sector banking and its relationship to the legislation of old and newly ..

Baader where Iraqi Businessmen Union to hold a seminar in the quality of the project dialogue between the public and private sectors and the relationship of financial and banking system to develop a strategy to develop the private sector for the years (2013-2030), which is part of the (14) strategy developed by the creative mind of the Iraqi ..

Here we are trying to highlight the most prominent research and dialogues which dealt with the reality and the level of performance of the Iraqi banking sector and the challenges facing its role in the transition conditions of the market economy ..

The seminar was attended by a select group of experts, government officials and representatives of some professional organizations and the Iraqi foreign and a number of MPs.

 In the opening speech noted by Professor Reza Ragheb Blibl President of the Union for a series of meetings within the project (dialogue between the public and private sectors), and most recently expanded meeting a month before eating placed revitalize the Iraqi economy, and we went out the directives of the task, inter ...

Today we are working on a review of the banking system and the obstacles facing the private sector is facing and called Blibl out the importance of the recommendations that we hope lifted and displayed in front of the decision-makers in order to serve our country and the private sector.



Required changes in the banking industry

Then the director of the Center for International Private in Iraq, Mohamed Alaa El Din for his role and support of many organizations and associations specialized and professional in order to develop their skills and improve their performance influential in the economic process, and these programs, calendars, business in all the governorates and the Kurdistan region and the implementation of Madjaet its recommendations and reforms.

To complete the first phase of the program of dialogue between the public and private sectors have been focusing on the three laws are (customs tariffs, consumer protection, and the protection of national product).

 He Aladdin .. Today we discuss the topics of the banking sector and its role in the development of the work of the private sector and achieve sustainable growth rates and is the financial and banking reform in the mobilization and re-allocated to stimulate the economy and bring many changes in the banking industry and reduce the phenomenon of migrant money ..

Flying geese!

This title occur Chancellor of the Federation of businessmen, Dr. Abdul Muti pumice symbolism of flying geese and its relationship to the idea of ​​economic inception says (what do we want from banks?, And what do we want money?) Added .. In a UN study issued in 1988 and we have obtained through our work in the Economic Unity Council, unions, the study shows that such investment (Flying Geese) Looking for a safe nest.!

Can developing countries, including Iraq benefit from the adoption of the idea facilities and financial and banking laws to form nests safe for birds geese who is looking for a warm climate ..

Yes is not necessary for foreign investment to issue goods to developing countries and can be issued for the manufacture of money for goods and services in those countries ..

But to ask .. how can the money be Auza birds in the country ..?

Dominates the world since the seventies of the last century, applications of the growth of small and medium enterprises to play the role of nourishing for large projects ..

We find this evident in Japan, China, South Korea and some countries in South East Asia ..

This approach to create jobs for more than 70% of the labor force in developing countries and in Europe and America, while this percentage in Iraq does not exceed 20% ..

 This approach reduced the rate of unemployment and poverty and has investments in upgrading technologies and patents and that was under the slogan (let them pass) why not be investing money in the financing of these projects in investment loans Omcharkat ..??

* Then we asked him about his opinion effectively targeted seminar dialogue between the public and private sectors Vojabna: the beginning of Asher, for the presentation of director of the Center for International Private Enterprise in his speech about the revitalization of the Iraqi economy, which he said (work makes democracy) was added to his Yes we want our system of financial and banking to be nests of Oz Flying corridor for small, medium and large to realize the dream of the Iraqi civil state leisured application of the logo (work makes wealth) Mansay which takes all of us because the financial sector banking leadership role in the Iraqi economy is in a transition towards a market economy ..

Council on Banking Supervision

The reality of the Iraqi banking system of public and private expert pointed appearance of Dr. Mohammed Saleh, deputy central bank kept the former government banks that account for 90% of the money in the bank, while the share of private banks 10% and work style which dates back to the early twentieth century ..!

These banks had custody of their capital and liquidity and suffer from inter problems, ie has a large block in the exercise of universal banking in addition to retail banking for individuals .. Saleh added ..

 In America appeared Control Act of Banking and Finance for the purpose of isolating comprehensive banking for retail ..

For example, with respect to deposits, we have 67 trillion dinars, of which 87% is for the government banks deposits ..!




In order to improve the banking system suggested inter important recommendations, namely: -


- If you were not in the intention to pass a law to organize investment banking (wholesale banking), it is necessary to amend paragraph (28) of Law No. 94 of 2004 concerning the activities of banned and allow banks to invest real capital firms and investment grade other and make tongs 25% of the capital instead of 20 %

- As long as the banking law of the above mentioned, you may tire of small business banking (retail) I do not mind working on the practice of wholesale banking. And shall be regulated by the rules and instructions of the fundamentalist ..

A new law for the government banks operating in accordance with the foundations of good governance that the separation of ownership and management separation Director-General on the work of the Board of Directors and operates according to the Banking Act No. 94 of 2004, subject to the completion of the structure of the major State-owned banks.

- Cancel comprehensive banking specialist for banks and strengthen their capital to work in the area of ​​lending.

- The formation of a higher council for Banking Supervision, chaired by the central bank and the membership of representatives from the banking market (the Association of Banks) and the Financial Inspection Office and the Association of Accountants and Auditors.

- To find a legal formula to facilitate the application of standards of banking supervision on the branches of foreign banks

- Allows for state institutions (public sector) filing with the private banks provided representation in the State Board of Directors in accordance with the formula set by the Ministry of Finance in coordination with the Association of Banks in order to achieve justice, competition, and the homogeneity of the banking markets.

- Cancel the restrictions on instruments drawn from the depositors of private banks

- The development and function of banking supervision through the establishment of the Institute of High-specialist observers bankers in the centers and the Kurdistan ..

- The opening of a branch of the banking supervision in the Kurdistan region and cooperation with the provincial government and in the interest of the financial system in the region.

- Issuing system for the company to guarantee deposits including Aatqata and liquidation matters contained in the Banking Act and banking No. 94 of 2004.

Why prevent the ministries dealing with private banks?

In his research on the effects of the environment on the work of the Iraqi banking pointed Executive Director of the Association of private banks Abdul Aziz Hassoun to the nobility of the banking system, which includes 54 banks between the government and my family, and branches of foreign banks ..

 This diversity has undergone changes and developments that accompanied the progress of banking in more than seven decades and the impact of the much necessarily a negative indicator clear ..!

He adds .. And stand in front of this relationship Aacherlna a state of imbalance or harmony after that escalated proceedings of government in preventing the ministries and government departments to deal with private banks and limit their dealings with banks owned by the government, although it was experiencing problems known and most important - the restructuring of the banking system of government ..!

I have undergone deposits to focus acquired a government banks on the ratio of the tyrant of them did not leave for private banks, only less than 15% and defended melodies with the performance and development of the work of private banks by saying: Despite all of this, and synchronizing our banks to develop and invested a lot in infrastructure development and construction of external relations and adopt modern means of communication and significant increases in their capital to get to (250) billion dinars, and increased in some banks to more than that ...

and have been waiting to open the doors in front of it to work in a safe environment working in their various authorities related to economic activity in general, and the financial and banking most notably ..

Director of the Association revealed a summary of the financial position of the banks own up to 09.30.2013 .. as the volume of deposits in (25) Ahli Bank 9.7 trillion dinars after it was 8.7 trillion dinars at 31/12/2012 while the total credit cash 4,060 trillion dinars at a rate of 41.7% of total deposits, up to the ratio 2/36% it was at the end of the previous year ..

And shows us that the ratio of liquidity in these banks exceed 58% and unfortunate that rising government measures and dedication in discrimination among private banks and those owned by the government and that world fell so much to the extent that require government agencies to private banks that paid their dues instruments on government banks Vendtr to pay dues tax income or distribution of petroleum products to pay the amount in cash to the bank Government ..

 And it's up to what the newspapers print advertisements from the ministries that define the non-acceptance instruments ratified or letters of credit from banks, but given ..

 For this, we were touched that evolution away us day after day as a result of the increased volume of cash, which leads the Government payments monthly from the salaries and wages of up to about (6.5) trillion dinars without initiating any party to take a step forward by using the tools available in the banks to implement Altadiat payments among individuals and institutions which Maardnah on many occasions at all executive and legislative bodies confirming banks willing to provide these services through n advanced systems that we currently use ..

Shortcomings in the legal structure of the work of banks

And the contribution of the banking sector in the economic development of a research made by the Executive Director of Gulf Commercial Bank Professor Samir Nasiri said it that all the studies and reports issued by the World Bank, IMF, and the Ministry of Planning and the Central Bank confirms the weakness of the contribution of the Iraqi banking sector in the development, investment, and these have reasons, notably that the economy Iraqi yield depends on the resources in the oil, which constitutes a contribution according to official statistics for 2011 (54.7%) of the gross domestic product, so all other economic sectors contribution ranging between (1.3-8%), the low levels compared to the economies of other countries in output GDP for the years (1990-2012) recorded a growth of mixed when he arrived in 2012 to 8%, but a low rate as the rise in this ratio to the international standard rates requires the evolution of the banking sector and repaired by bypassing the challenges currently faced by ..

 And indicates Alnasiri most prominent of these challenges, he says: the existence of shortcomings in the legal structure of the current governing the banking business, with confusion vision of economic and political visions that unite and coordinate between fiscal and monetary policy, this, along with the weakness of government support for the banking sector with the reluctance of a supervisory role, and also double the contribution to the fund This large-scale projects as well as the importance of the work to address the technology gap compared with the countries of the world have exceeded ..

It is a fact indicates that the economic performance of financial Iraq influenced to a large extent on the performance of the oil sector Oil revenues account for about two-thirds of GDP and all export earnings and fiscal revenues almost affected GDP growth shocks price and volume of oil and there is a need to strengthen the financial sector in order to support the growth of the sector Non-oil ..

 We also note weakness to strengthen the partnership between the public and private sectors as an optimal solution to address the imbalances faced by the economy of the country in the transitional phase of the current and requires follow-up program of economic reforms at all levels in order to increase economic growth.

It concludes researcher Alnasiri proposal recommendations including: activation of the recommendations of the workshop's central bank to amend the laws governing the banking business, and confirmation to the establishment of a higher council for economic affairs, and to initiate the development of restructuring of the banking sector and the adoption of fair competition with state-owned banks, and the development of payment systems, and work on the establishment of a development bank and finance and investment, and the establishment of companies chock the banking business, and a commitment to apply the Basel standards and the development of the Department to develop the private banking sector, along with the introduction of a new system and effective control ..

Increase the bank's capital strength is not a guide!

Explains economic expert Majid picture through a working paper in which he mentioned that the Banking Act No. 94 is for commercial banks, which works on the basis of its commercial organization and not as banks and investment banks, including Islamic banks and not the development ...

 So the main problem in the process of the role of development banks is a legal problem and must be regulated to make way or amend this law in order to enable some banks, but not all because of the investment banks labor standards which differ from commercial banks.

 The latter is usually a short-term loan and exceeding the year and has always supported working capital needs in the case of factories or farms ..

He adds the picture .. The problem of legal also with respect to large loans or credit and there was no supervision of the internal integrated them as well as the implications of the security situation, how can I give loans and economy specific to this situation, a monopoly by trade example, in 2012 and arrived in Iraq's imports for the public sector and private sector reached (95.2) billion dollars in addition ways to go to that found for the central bank ..

 Suffice it to mention that in 2013 we sold 51 billion dollars and 49 billion dollars before ..!

 I say, how to monitor billions in cash from operations and selling, which has become the interventions and a section of the staff have a role to do so ..

And subjected to mock placed capital increase banks ...

 He said the increase is not a pointer to force the bank and can choose from a number of banks to increase ..

 We also note bank Rafidain and Rasheed was 20 billion and increased to 64 billion, which is considered a strong banks, and dealing with banks, not on the basis of one ..!

 While the banker agricultural and industrial sinks Rosmalhma still limited ..!

We have ăÇíÎŐ branches of foreign banks and the capital of non-specific and high capital compared to the locality ..

 Permission must identify the capital of the total foreign capital of local banks as there are loopholes in the law on the banks of a bank owned by more than 51% of the capital of the foreign bank here and must fix it ..!

We want your voice and your efforts with us

For his part, Mr. Abdul-Hussein al-Yasiri member of the parliamentary finance committee for his opinion as put forward by the experts at the symposium, he said: I wish to clarify the relationship between legislation and laws related to the development banks because the laws are selected first for all banking activities and economic So we saw adjustment clause laws including tax, corporate and customs tariffs and other .. He added ..

We (13,500) thousand law and the decision of the dissolved Revolutionary Command Council and worked to divide and show the existence of (9) Thousands of law and economic ones appeared good and is good ..!

That is why we want your voice and your efforts with us ..

As regards the separation of banking department for the owners see a move to set up a successful banking system ..

While our banks and economic institutions are still using the old ways, and it continues to citizen complaints of delayed delivery and corruption ..

 He called Yasiri to form a working group of experts and follow-up seminar and not just come up with recommendations ...!

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