70 private banks in Iraq .. and the World Bank expects it to be ranked first in the Arab world in growth


2022/04/20 00:56

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Baghdad / Obelisk: The Deputy Governor of the Central Bank, Ihsan Al-Yasiri, said, on Tuesday, that there is oversight from the Central Bank on private banks.    

Al-Yasiri said during a television interview that “the government system accounts for 85 percent of deposits and the public,” noting that “after 2003, we have a large number of banks, some of which are private, which are excellent and have reached stages in digitization and the digital economy.”  

He added, “We have supervision and an attempt to push some banks to be good and rise to the required level, as we focused on controlling the banks’ behavior.”  

He also said: “We have 70 private banks, more than half of the number are excellent, while the government has seven banks, namely: Al-Rasheed, Al-Iraqi Trade, Al-Rafidain, Al-Nahrain Bank, which is a model for Islamic banking, and the Housing Fund, while the Industrial Bank is doing well.”  

 Al-Yasiri revealed that “the enforcement of the law for loans confirms the existence of a guarantee for any dinar that is loaned, and the one who does not have an income from a fixed source must provide a guarantor – the cost of lending is very high, and when there is an interest of 8% on the loan, it is very expensive, but if the limits of risks increase, they may increase.” .  

He added, “The Rafidain Bank granted loans to large institutions, and there is a loss of up to 6 trillion dinars in these loans due to the pressures of increasing the interest rate, but part of the risks of non-payment are avoided through them.”  

 The Deputy Governor of the Central Bank said: “We have 76 trillion dinars as a source of circulation, 20% of which are deposited in banks, and 80% of them are stocked houses, and this is a deprivation for society.”  

He added, “Hoarding money in homes, which is behind the mistrust of some citizens in banks, regardless of whether they are private or governmental, is a high risk, as these funds may be exposed to damage, burning or theft.”  

And he stated, “The Central Bank has set strict standards to control the behavior of banks and we are witnessing a development in performance, knowing that the banks’ control has 3 tracks, the first is improving performance, merging the bank, or withdrawing the bank’s license if the reluctance continues.”  

He said, “The government system acquires 85 deposits and the public,” noting that “after 2003, we have a large number of banks, some of which are private, which are excellent and have reached stages in digitization and the digital economy.”    

  He added, “We have supervision and an attempt to push some banks to be good and rise to the required level, as we focused on controlling the banks’ behavior.”    

He continued, “We have 70 private banks, more than half of the number are excellent, while the government has seven banks, namely: Al-Rasheed, Al-Iraqi Trade, Al-Rafidain, Al-Nahrain Bank, which is a model for Islamic banking, and the Housing Fund, while the Industrial Bank is doing well.”    

Al-Yasiri stressed that “the enforcement of the law for loans confirms the existence of a guarantee for any dinar that is loaned, and the one who does not have an income from a fixed source must provide a guarantor – the cost of lending is very high, and when there is an interest of 8% on the loan, it is considered very expensive, but if the limits of risks are increased, the risks may be increased.” interest rate increases.    

  He pointed out that “the Rafidain Bank granted loans to large institutions, and there is a loss of up to 6 trillion dinars in these loans due to the pressures of increasing the interest rate, but part of the risks of non-payment are avoided through them.”    

In an aspect related to the economy, the World Bank expected that Iraq would rank first in the Arab world with the largest growth in GDP and per capita for the year 2022, as indicators confirm that Iraq has achieved a very promising and positive percentage regarding recovery from all the recent crises that faced the world such as the spread of the Corona pandemic, and the decline Oil prices.   

Economists at the World Bank expect, according to its report published this April, that “Iraq’s gross domestic product may grow this year by 8.9%, surpassing the rest of the Arab countries, including Qatar, which is expected to witness a growth of 4.9%, Saudi Arabia 7%, and Kuwait 5.7% UAE 4.9%, Algeria 3.2%, Egypt 5.5%, Jordan 2.3%, and Morocco 4.3%.  

  The report added, “The growth will decline in Iraq in 2023, but it will also remain higher than the rest of the Arab countries, except for Egypt,” noting that “the growth of Iraq’s GDP will be 4.5%, similar to Qatar, and it will rise in Egypt to reach 5%, and Saudi Arabia will have 3.8%.” Kuwait 3.6%, Algeria 1.3%, Tunisia 3.5% and Jordan 2.3%.  

The World Bank report indicated that “Iraq will also be the highest among the Arab countries in terms of per capita GDP growth during 2022, at 6.3%, while the per capita growth in Saudi Arabia will be 5.5%, Kuwait 4.5%, Bahrain 1.4%, and Egypt 3.6% Qatar will drop by 4.5%, while Morocco will decrease by 0.1%.

https://almasalah.com/ar/news/225384/70-%D9%85%D8%B5%D8%B1%D9%81%D8%A7-%D8%A3%D9%87%D9%84%D9%8A%D8%A7-%D8%A8%D8%A7%D9%84%D8%B9%D8%B1%D8%A7%D9%82-%D9%88%D8%A7%D9%84%D8%A8%D9%86%D9%83-%D8%A7%D9%84%D8%AF%D9%88%D9%84%D9%8A-%D9%8A%D8%AA%D9%88%D9%82%D8%B9-%D9%84%D9%87-%D8%A7%D9%84%D9%85%D8%B1%D8%AA%D8%A8%D8%A9-%D8%A7%D9%84%D8%A3%D9%88%D9%84%D9%89-%D8%B9%D8%B1%D8%A8%D9%8A%D8%A7-%D9%81%D9%8A-%D8%A7%D9%84%D9%86%D9%85%D9%88

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