08/21/2013 12:00 AM
Systems do not keep pace with banking modern
BAGHDAD-Hussein thghb Tamimi
suffer the banking sector in Iraq from the many challenges and needs sweeping reforms with a view to carrying out its functions key to be able to keep up with international developments and work according to their standards. In this regard indicates banking expert Samir nasiri to malfunction significantly in the banking system boils down to having to huge liquidity but untapped promise this phenomenon Balemczuhh the banking activity. In an exclusive interview nasiri for the (morning) called to invest this money supply by expanding lending and soft benefits. Pointing to the need to strengthen the partnership between the public and private sectors as a solution optimal to address imbalances faced by the economy of the country in the transitional phase current and follow-up program of economic reforms at all levels in order to increase economic growth.
said that the issue of activating the banking sector in national economic development is one of the necessities urgent, especially in the Under the new economic trends in the shift towards a free market economy.
and said here comes the role of government and private banks to strengthen the process of economic development in Iraq. That's where the reform process should not be temporary and in the framework of vision piecemeal solution because it will lead to the return of the problematic crisis management in the treatment and suffered by the Iraqi economy, but that the solution must be within the framework of economic vision College-dimensional strategic fit with the orientations of the Iraqi economy towards reliance on market mechanisms as a parameter President to support the private sector and to expand its role and reduce the role of the state out of the frames of complex and interlocking.
decline in the contribution of banks
and continued by saying: notes from the analysis of financial indicators above that of the reasons for the low contribution of the banking sector in economic development is that the Iraqi banking system your newly established Although most government and private banks are still limited capital and banking systems and administrative not kept pace with modern banking and information systems and analysis. He pointed out deposits in these banks are still few compared to the government banks therefore will be its contribution to meet the requirements of development and reconstruction is very limited, especially in financing large projects will be their role is limited to twice the potential to finance projects which tend to finance small and medium enterprises and maturities short time.
investment financing strategy
And said the role of the government banks much greater in this area of the high and their deposits will remain the state a larger role and the greatest investment in financing strategy, as the legislative environment governing and control work offline and the high requirements of taking precautions of private banks as well as the determinants in cash management and administrative investment in the banks will make this possibility is very limited shrinking resources for funding.
And increased nasiri saying: The high investment returns offered by the Central Bank of Iraq to private banks will reduce and reduce its investment in major projects risks college, where remains of private banks limited activity of its contribution to economic development as most of our banks business, has expanded its activities to include investment, consumption and some of the other banking tools classic known and there are administrative and legal determinants of several sets of investment within the regulations set by the Banking Law No. (94) for the year (2004) and Iraqi Central Bank Law No. (56) for the year (2004).
and stressed that the banking system private facing real challenges are deficient legal environment in the current governing the banking business which the Banking Act and the CBI 56 in addition to the registration law firms 21 for the year 1997 and the law of the Iraqi market for securities 74 for the year 2004 and the Law of the Securities Commission and the Investment Law 13 of 2006 and the Money Laundering Act 93 of 2004 as the These laws contribute in some materials a significant contribution to reduce the contribution of the banking sector in the development and make it limited to the services concerned Bachirfah and business daily routine, which does not exceed 15 service at best out of 51 banking service must be carried out according to what you stated Article 27 of the Banking Act in force. He pointed to the confusion of the economic vision and visions and policies that unite and coordinate between fiscal and monetary policy and the importance in reducing inflation and economic stability, as well as weak government support for the banking sector with the reluctance of the supervisory role and regulatory and supervisory bodies responsible for monetary and fiscal policy.
and said the economic and financial performance Iraq is influenced to a large extent on the performance of the oil sector. terms Oil revenues account for about two thirds of GDP in Iraq and all export earnings and fiscal revenues nearly so affected GDP growth shocks price and size estimation of oil., and there is a need to strengthen the financial sector in order to support the growth of the sector is oil. revealing the existence of the phenomenon of chronic afflicting the banking sector in Iraq is Bahtfazaa liquidity high could reach more than 50 percent of the capital but to no avail, or contribute to the development due to the inability to invest in development projects large, as well as poor planning and implementation of the policies of government support the banking sector due to his careful nature of the economic development of the enormous world is witnessing and opening up to the free market and the failure of the government institutions, the organization of work in the banking sector and the capital market and support the business and overseeing the market through the mechanisms and procedures controlled where the organization of the economy without interfering radical in the details and the involvement of all segments of the private sector in the process of growth and development for the advancement of the Iraqi economy. The Nasiri concluded by referring to the importance of work to address the technology gap in modern banking systems experienced by the banking sector compared with the findings of the other countries of the world.