11/23/2014 (00:01 pm) – The number of readings: 202 – Issue (3222)
Economists call for the restructuring of state-owned banks to provide performance equivalent to the opening of the Iraqi market
BAGHDAD / Ibrahim Ibrahim
Iraqi government economists called for “restructuring of banks in proportion to the global development of the global banks and keep up with economic openness with the countries of the world, and expressed their satisfaction over the decision of World Bank contribution to the restructuring of state-owned banks to raise the rate of the Iraqi development.”
She said an economic expert Ikram Abdul Aziz in an interview for the “long”, “The restructuring of the Rafidain and Rasheed is a holistic concept to secure the good performance of the financial, technical and administrative aspects so as to ensure a productive management of costs and this is done by the development and activation of the relevant job banks aspects.”
“The World Bank allocated ten million dollars to re-structuring bank Rafidain and Rasheed in the coming years and to develop the electronic aspects and raise the level of financial transactions.”
Abdul Aziz explained that “to go to the restructuring linked to resolving the bad debt problems for years as well as providing real opportunities for the development of banking staff skills to ensure the upgrading work of the two banks.”
It showed that “the maid to the idea of restructuring aspects is the need to train human resources and administrative and attract banking talent capable of securing revenue and provide banking services provide Maalikis rights of individuals and provide sufficient financial liquidity.”
She pointed out that “there are external debts with great benefits pose burdens and obligations of the largest private capital Balmusrven addition to assets is a money orders issued to the Treasury finances the deficit in the public budget of the country.”
She stressed that “the delay in the development of technological systems in which they can connect bank branches centralized information network management, due to lack of funding faced by the government banks.”
It pointed out that “the government and private banks Rafidain and Rasheed possess a great history and a leading role in the field of development and development, covering important aspects of the financial needs of the country for the construction and establishment of major projects have contributed to the development of the country for the better.”
Parliamentary Finance Committee and revealed its intention to restructure the legislation law Rafidain and Rasheed to free them from the domination of the Ministry of Finance, as pointed out that it continues to work on the development of the banking system in Iraq.
A member of the committee MP Faleh Djiashi in a press statement, “The committee is working on legislation to restructure the banks and government Rafidain and Rasheed to free them from the domination of the Ministry of Finance and imbedded two major banks competitors for local and foreign banks law,” adding that “this project will be submitted to the Presidency of the Parliament in the next few days for discussion and voting on it.”
He added that the members of the “House of Representatives, especially the parliamentary finance committee are working hard to upgrade the Iraqi banking system through the support of the banking sector legislation of laws,”stressing “the importance of the Banking Act, legislation to support the banking sector in the country.”
The economist said Mohammed Abdul Latif Al-Ani’s “long”, “The Banking Act despite repeated amendments do not keep pace with the great development witnessed in the Iraqi market since 2003 and is now opening up to the market at various levels.”
He said. “Lack of experience of the development of State-owned banks in terms of size and nature of the activity and the type of services related to the weakness of the funds to contribute capital and non-banking services to keep pace with customer needs and limited activity, including not accommodate the needs of the local market.”
Ani explained that “the Iraqi government and the duty to formulate development plans that advance the banking sector, the government, which represents 91% of the deposits, but was hit by helpless because of non-viable loans granted without adequate safeguards.”
He said “there is a need for substantial restructuring of State-owned banks in proportion to the reality of the global economy, which has seen quantum leaps represented technological renaissance that facilitated and canceled a lot of routine obstacles experienced by customers.”
He stressed that “the work on the restructuring of banks according to the suit and plans projects implemented by the government, so you must create an effective partnership between the state’s economic institutions, most notably the official banks that would supplement the major projects of large liquidity-owned.”
It is noteworthy that the Association of private banks in Iraq, said in (the fourth of January 2013), the number of private banks in Iraq reached 32 banks in two decades, in addition to the growing number of branches in Iraq to more than 500 branches and assets of these banks amounted to more than 12 trillion Iraqi dinars, as the volume of deposits in eight trillion dinars, cash credit and arrived in a total of three trillion and six billion dinars, while the capital of these banks and their reserves amounted to three trillion and three billion Iraqi dinars, and that the total profits of these banks exceeded Al477 billion dinars.
The study estimated that the local government banks’ capital reached until October of 2012, the last end, a total of 754 billion dinars, compared with more than four billion dinars for private banks, and investment balances in banks operating in Iraq recorded up to 10/31/2012, a sum nearly six billion dinars (5.947), and the State-owned banks, including the share of 4.929 billion dinars, compared with 1.018 billion dinars for private banks.
The International Monetary Fund said in a report issued in (21 March 2013), after the end of the consultations held in Amman, Jordan, between a delegation from the Fund and the Iraqi delegation, headed by the former Minister of Planning Ali Shukri, and seen by the “long-Presse,” that the improvement in the the financial sector, but stressed that it still needs a “greater than by the central bank in the revision of monetary policy and strengthen banking supervision tools efforts, and to accelerate the restructuring of the banking system.”
He called on the International Monetary Fund and the Central Bank of Iraq to take measures towards the gradual liberalization of foreign exchange offer through auctions held by the Bank so as not to repeat disorders suffered by the financial market in the past year.
Fund and stressed that “the establishment of a national banking system requires abandoning the current model which controls state-owned weak banks that enjoy preferential treatment that distinguish them from private banks,” calling on Iraq to do to strengthen public financial institutions to ensure efficiency and transparency in the use of oil revenues.”
It is noteworthy that Iraq has seven banks owned by the state and 23 private banks and eight Islamic private banks, according to the central bank’s website, while dominated by the banking sector, banks, Rafidain and Rasheed Aovernmaan, currently undergoing restructuring for debt accumulated after years of war and sanctions repay.
http://translate.google.com/translat…2585%25D9%258A
Like this:
Like Loading...
Search 4 Dinar 