World Bank oversees the draft Islamic Banking Act

by lonelyintexas Mon 30 Mar 2015, 8:56 pm

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World Bank oversees the draft Islamic Banking Act

by lonelyintexas Mon 30 Mar 2015, 8:56 pm

World Bank oversees the draft Islamic Banking Act

Najla Baghdad, Salah al-Din: March 30th, 2015

The Iraqi government announced on Sunday, modify the civil Banking Act, or the so-called «commercial banking law», to the development of banking law, stressing at the same time, the legislation of the Islamic Banking Act, which oversaw the writing paragraphs of experts from the World Bank.

He said the economic advisor to the government, the appearance of Mohammed Saleh, said in an interview to «New Morning», that «civil Banking Act No. 94 of 2004, a good law does not exist in paragraphs any significant impurities», indicating that «the parliamentary Finance Committee has proposed to amend the law within the developments that have taken place during the ten-year period from Legislation current law.

Saleh added that «the amendment will include Article 28 of Law No. 94 of 2004, which requires private banks or the so-called (commercial banking law) owning shares in the creation of an airline or owning farmland or industrial», pointing to the «lack of impact on the liquidity of the bank in the case of possession of those shares

With regard to the legislation of the Islamic Banking Act Salih stressed «optimism largely on the draft law, which was written by international experts in economics and supervised by the World Bank.

Saleh believes that «the Islamic Banking Act (Modern Banking Act) depends entirely on the profit and loss and Halal and Haram », indicating that« the new law if they are voting on it will monitor has about 250 billion dinars.

Salih noted that «Islamic banks will give impetus to the advancement of the banking sector and create an atmosphere competitive interbank Iraq, as well as it will help to accelerate investment growth by encouraging the work of reconstruction and speculative stocks », ruling« legislation of a special law for Islamic banks at the moment because it will affect the nature of government and private Iraqi banks.

To the Executive Director of the Association of private banks Abdul Aziz Hassoun, the «General Banking Act did not apply correctly», adding that «the defect is not in the law, but to apply it correctly.

Said Hassoun said that «Islamic banks need to operate legal framework and clear, because the work is inconsistent with the text of the law Banks No. (94) for the year (2004), especially in the field of investment and check posts profit.

And between the Goldfinch «Islamic banks act contrary to public banks Act of (2004) believes in the principle of being a financial interest, while Islamic banks give loans without a financial ratios them.

He explained that «the central bank wrote a draft private law action Islamic banks and discussed with private banks Association, and now has been introduced to the legislature (House of Representatives) is not his decision», indicating that «the law will allow banks to the practice of Islamic banking, which are very different from conventional banking.

He that «the Banking Act No. 94 of 2004 has been applied to private banks did not apply to government banks, which led to a clear imbalance in the work of the lack of a mechanism followed centrally by the central government.

Confirms goldfinch that «the Islamic Banking Act was written without taking any economic advice by specialists, what ultimately leads to the events of gaps and issues need to be modified after it .

Refers Executive Director of the Association of private banks that «supported Islamic banks work globally», likely «not to apply the law in light of the current conditions in Iraq that do not outside the framework of achieving a profit only .

As a member of the Finance Committee National Alliance MP Jabbar Abdul Khaliq, has attributed the reasons for the government to encourage to open Islamic banks to increase the high financial benefits imposed by some government and private banks, which up to that proportion (8%) and ( 10%).

He said It added Abdul Khaliq told «New Morning», that «the central government experimented by opening Islamic windows in the Rafidain and Rasheed to see how Iqbal audience her», adding that «experiment succeeded, which led to the encouragement towards open a local Islamic banks or foreign more in Iraq.

The Presidency of the Republic issued a set up Islamic Bank Mesopotamia Law No. (95) for the year 2012 with a capital of 50 billion Iraqi dinars, noting that «from the bank tasks practice aspects of banking activity in the inside and outside Iraq, and to do the work of the finance and investment in various projects and activities.

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This sounds good.
Thanks
LIT
yes