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BAGHDAD / Economy News …
Called bank officials, the central bank to cooperate to solve problems plaguing activity of private banks in particular with regard to foreign currency conversion, and expressed his own bankers expressed concern due to the continued prosecutions against them on the part of the Integrity court on charges related to the operations of daily banks, which impacted negatively on trade banking in general.
The head of the Iraqi Islamic Association of Banks Sadiq al-Shammari, a severe dangers may be exposed to private banks, which is a vital artery feeds the economic activity Baktaath all, that causes us to take swift measures to put an end to the damage caused to a lot of banks and Kplha handicaps included its potential in the implementation of their financing programs. ” .
He said the managing director for the Islamic National Bank, said that “the ongoing meetings between the Governor of the Central Bank of Iraq on the Keywords and private banks, yielded positive results in terms of the importance of addressing the concerns of the private banks.” He explained that “the causes of the performance decline and inability to meet its commitments to customers in some of the private banks is not to track the status of these banks should also be on the part of stakeholders, especially the reputation of the banks do not stop at the area of Iraq, but extends to the global correspondent banks which now draws question marks about the substance of prosecutions faced by private banks. ”
He stressed Shammari the need to “activate the work of the competent fiscal court disputes and irregularities between the banks and the Central Bank, and the treatment of anxiety that prevails in private banks now require steps to restore the confidence of the private banking sector and the recovery of its prestige and its position in the domestic and overseas market.”
Shammari pointed to “countries that pay attention to their economies through the auspices of the banking sector and improve the working and investment environment, as the presence of banking system sound and healthy evidence of the prosperity of the country,” noting that “the Iraqi banking sector has a broad base of assets and human resources experienced, and Executive departments of the girl expertise sector through years of professional struggle, as some of them have academic coupled with many of the relevant literature sector economy and money reputation, but on the other hand we see trends against the executive departments by imputation them and refer them to justice, note that bank governance and implementation mechanisms the responsibility of boards of directors in these banks and institutions. ”
He pointed out that “the executive departments part of these mechanisms, but Pat blame and sentences issued against them, and that the instructions issued by the Central Bank states that the bank informed the Central Bank in the absence of customer proof of implementation of the transfer provision, and failure to provide documents that support implementation, including customs permits, within the prescribed time, and according to these instructions is the amount of the difference between the selling price of foreign currency sale by the central bank and the market price at the time of the Iraqi dinar window are met, with the addition rate of 2 percent in administrative costs from the amount, and the amount is deducted from Open bank account at the Central Bank. ”
Shammari pointed out “the importance of the availability of diagnostic look effective for the management of private and government banking sector based on those in charge of sector expertise, and draw lessons from the experiences of countries that have passed the same conditions experienced by Iraq, thus achieving the goal of transition to a market economy, and that the duty to promote the banking sector requires the availability of a strategy to take into account the reality of the complexities of financial and monetary situation in Iraq and address the gaps created by the legislation that make it easier to move the country’s economy to a stable climate applications, including providing opportunities for achieving sustainable development, “and pointed out” of private banks, the urgent need to support that motivated to increase the size of their services and attract capital in a manner reassures the owners to invest when dealing with Iraqi banks and the activation of the competition between the public and private sectors through initiatives related to the reform programs and to adapt to new developments related to exceptional circumstances of Iraq in terms of funding and lending. ”
He warned that “the Iraqi private banks at a delicate stage difficult and their implications for its future and its role in economic activity, which requires the adoption of a feasibility draw operational and investment policies contexts, and that can not happen except through dispel anxiety that prevails in the activity of private banks that are looking to the central bank to take as it deems appropriate to support the private banking sector and help them overcome the weaknesses. ”