Hafiz emphasizes the need for attention to the warnings of the World Bank
BAGHDAD Shokran Fatlawi
Economic expert called d. Mehdi al-Hafez need to pay attention to what came in the World Bank report of observations on the Iraqi financial sector, especially the banking system, stressing that envisages solutions accuracy in light of the recommendations and warnings
The banking system
This came during a seminar organized by the Institute expanded the progress of the development policies and attended the »Sabah» touched during which the President of the Institute and moderator d. Mehdi al-Hafez to the challenges of the banking system represented by the financial system as it is still subordinated to the control of the state and contributes more than 75 percent of the assets as well as the fact that financial institutions and markets non-bank small and non-advanced accompanied by the financial infrastructure is weak causing obstruction to access funding.
Hafiz pointed out that there are seven state banks are dominated by this sector especially, Rafidain Bank and the Trade Bank of Iraq and Rasheed Bank, pointing out that private banks are very small, where established, many of them in recent times, indicating that seven banks among the 36 private banks have foreign participation in Eight of them operate according to Islamic principles.
Hafiz said that the World Bank is supporting the reform process since 2009, pointing to the need to accelerate the process of reform of the Rafidain Bank and Rasheed Bank through the selection of items disputed budgets and transferred to a new company to manage the asset / liability indicating the importance that the lead banks, the roles assigned to them, whether banks governmental Aomassarv especially pointing out that the Trade Bank of Iraq was established to be a specialized bank trade afterthought that he is currently working as a commercial bank years has become an important party in the financial system, noting that government banks should be subject to the supervision of the Central Bank of Iraq.
For his part, the Director General of Statistics and Research at the Central Bank of Iraq and Walid Idi Abdul Nabi »Sabah» highlighted the problems experienced by the Iraqi banking system, including the low density of bank indicating that it reach the limits of one bank each (32000) people pointing out it's a low percentage compared to the standard global amounting to banks and one each (10000) Nsma.wachar Idi to the absence of strategies banking actors and detailed plans annual for the majority of banks as well as the absence of institutions chock of the banking system, such as an insurance company on deposits and loans and large company to study the market risk accompanying mismatch banking services with the requirements and economic needs of the country in the light of the orientations toward a market economy, indicating that the number of services is up to (20) service which is less than the offer of Arab Banks and Alajunbah.nahik weakness of banking technologies and not used on a wide range in a large number of banks and sagging administrative structure in a lot of banks, especially in banks government and traditional routine procedures adopted by the Department of Registrar of Companies, causing the delay in the ratification of the decisions taken by public bodies for the banks, he said.
Summed Idi most points to be taken in order to develop the banking system and of them, the development of banking supervision, the development of Islamic banking, rehabilitation and restructuring of State-owned banks, the fight against money laundering and financing terrorism, pointing out that the central bank has taken several measures to develop the work of the Office of the Money Laundering Reporting where he was completing the amendment a bill to combat money laundering and terrorist financing by the IMF Ata.odart during the seminar discussions and presentations by participants from academics, economists, businessmen and representatives from the private sector focused in the search for mechanisms to achieve rapid reforms required.