Central Bank emphasizes the need to force the small private banks to merge

15/07/2012 08:37
BAGHDAD / Center Brief for the Iraqi Media Network - The Central Bank of the need to amend the Banking Act and make the right of the monetary authority to force private banks with small heads on the integration of money for the purpose of stabilizing the financial system of the country

The deputy governor of the Central Bank of the appearance of Mohammed's (Center Brief for the Iraqi Media Network) that "it is necessary at this stage to amend the Banking Act No. 94 of 2004, there is no provision to force banks to merge," noting that "there is a clause stipulating the so-called persuasion literary" .

He added, "should be the monetary authority has the right to force some banks to merge with each other for the safety and stability of the financial system in the country in some extreme cases of financial confusion."

He pointed out that "this process contribute to the progress of the overall economy through the integration of the banks that have little capital with each other and create a new banking entity that can contribute Bartqa the country's economy."

For his part, Vice President of Paradise financial representative Ahmed Hassan Faizullah it could not use the method of forced to merge banks because it is against the work free trade, and added to (Center Brief for the Iraqi Media Network) that "the process of integrating banks compulsory means to create a kind of monopoly for some other banks and this Business Profile against the free, "noting that" Thus the law would limit the diversity and competition among them. "

It is hoped when merging small banks with little capital with each other resulting in solid banks can compete with the government banks, in addition to its contribution in the investment process and the granting of loans and advances to the citizens.


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