Development and the challenges of the banking sector

11/11/2017

Salah Hassan

Arab banking sector showed a high ability to deal with various challenges and events in the region and the resulting political and economic consequences of social and despite the difficulty of these challenges and the volatility of the data and the concomitant decline in economic growth rates and the worsening levels of unemployment and high risk levels and uncertainty, especially in non oil ... but Arab banks generally continued to play its pivotal role in the economies of Arab countries and managed to maintain the strength of their financial positions as well as to achieve stable levels of profitability and acceptable and perhaps the most prominent factors that have contributed to the promotion and P Arab banking sector is the adoption of the fortified banking policies of maintaining high levels of liquidity and increase reserves and provisions to meet the conditions and the pressure of this, along with the close and continuing with the central banks and regulatory cooperation, which contributed to the strengthening of the strength of the banking system in the face of potential risks must be transfer to achieve economic and developmental aspirations and was the most prominent challenges facing the Arab banking sector is the developments and transformations taking place in the Arab region, which has become cast a shadow over the economies of a number of countries, especially the non-oil ones At contributed to these conditions in reducing financing and investment opportunities as well as the high cost of operations due to the high risk, which create increasing pressure on banks' revenues and levels of profitability and on the other side, the decline in oil prices in world markets and accompanied by a slowdown in government spending in the oil-producing countries are affected the pace of asset growth and quality and levels of liquidity, which may be reflected on the performance of banks in those countries during the coming period.

As remains the achievement of economic and legislative reforms related to environmental stimulate business investment and building an effective partnership between the public and private sectors within the main challenges in a number of countries in the region where constitutes a requirement as President of various business sectors , including banks in order to make a leap required for the economies of these countries so as to ensure the achievement of their aspirations economic and development.

Also, Arab banks are facing recently new challenges of increasing legal risks and Altzimih in the work of banks under the stringent application of international regulatory standards and economic and trade sanctions , which has driven many international banks to reduce or even end correspondent banking relationships in what has become known as the phenomenon ((risk de-risking ease)) with the steady development of information technology and communications revolution stands banks today in front of a strategic challenge is the need Mrasalh work actively to innovate and provide the best in terms of services and banking solutions to keep up with the continuous development Is not limited to the aspirations and needs of clients from different groups, especially young people understand, which requires the banks to reconsider their products composition and methods and mechanisms to provide services and continuous employment to bring about the means and tools technological in line with those developments and forward - looking for the decision and who follow him, the financial inclusion rates in the Arab region still represents one of the main development challenges of the banking sector must be to lead the Central Bank of Iraq and leadership circles in which follow a holistic view and payment to the developmental movements and we all hope so.