Special / Economy News
Holding the progress of the development policies of the Institute on Saturday seminar entitled / the future of the banking sector in Iraq /
He said the institute’s president MP Dr. Mehdi al-Hafez at the start of the seminar which was attended by a number of specialists and those interested in the financial, economic and banking affairs of Iraq, the importance of the government banking and private Doralqtaa in the development of the Iraqi Ttoiralaguetsad and what is owned by the material and human resources.
For his part, reviewed the adviser to Prime Minister Dr. appearance of Mohammed Saleh history of the government of the Iraqi banking sector and the regulations which currently operates under and the size of its capital relative to its assets, which does not represent only a small percentage does not exceed two percent.
Turning to the private banks noting that the ratio of capital to assets which are almost identical,
He also noted the relationship between the government and private banks describing it Bgiralmnsjmh at the moment, adding that the 45 trillion Iraqi dinars out of 65 trillion are deposits government concentrated the bank Rafidain and Rasheed, noting that the capital ratio to invest in these banks is nearly 34%, while credit cash is up to 36 trillion dinars, nearly 0.29 trillion of which are deposited with the government banks, either as loans or investments, the institutions of government, and only 7 trillion to the private banks.
Based banks that the government enjoys sovereign liquidity because its activities rely on government institutions increased by 50-54% and the rest is excess liquidity.
And the benefit of the Iraqi banking law that separated commercial banking from those non-commercial, which is implemented on private banks only, without government ..kma that the government banks do not comply with Law No. 94 of 2004 and the overall work Bachirvh.
Salih stressed the need for good governance, good governance and the separation of management from ownership and is an important issue for the sustainability of banks and development.
For his part, head of the Iraqi Business Council David Abdul Zayer to the importance of the reorganization of State-owned banks, which suffer from serious problems for decades, noting that the recovery of capital and deposits has still Mtlkia therefore suggested that stopped work temporarily and re-organization and restructuring and the development of international control them to monitor Al_husapt and audit and the organization of work to bring him back to life Modern system and manage a new comprehensive and sophisticated banking system,
He / If we want to have a banking system that Rezin good vision of the Iraqi economy and monetary policy, lending should be made from the reserve of the bank, not from the funds of depositors, also stressed the need to Asaddarraldenaralaketrona by the bank Rafidain and Rasheed to achieve the jump of the Iraqi economy because the money the whole government and thus will control the money through Dinaralaketrona and the elimination of corruption, nepotism and be the collection of one of the state under this system.
As for Dr. Majid picture board member of the Iraqi Central Bank administration has stressed that the restructuring of State-owned banks on the table since 2005, and in 2008 received a report prepared by a foreign company in connection with the government banks / Rafidain and Rasheed assess / operational and regulatory point of view, was whereby an integrated program developed by the bank international and the Committee to restructure State-owned banks began work done since 2009 Chehrmays restructuring of the operational, administrative, financial and regulatory aspects.
He pointed out all studies completeness and prepare recommendations after two months of that date, and put an action plan for the restructuring, and coincided with a law to government banks ,, but the restructuring has not materialized so far, and is waiting to see the light after approval by the committee supervising it.
He added that the picture / CBI worked hard to restructure State-owned banks, but did not find the response from the Ministry of Finance /.
He stressed the need for a political consensus – an executive for discreet banking system and get rid of the problems and obstacles faced by the banking sector, which suffered by specialized government banks as well.
He stressed that a comprehensive banking system is one of the main conditions for the development of the banking system, without it can not Attoralaguetsad, also can not privatize any organization without structure .. therefore there must be a restructuring and then privatization partly Ockelaa according to requirements.
He criticized Suri specialized banks because of their interaction with the central bank, which allocated 5 trillion dinars to support small and medium enterprises, noting that the decisions of these funds are making a disbursement aspects will lead to reduced contraction happening in government expenditures.