Experts recommend restructuring of State-owned banks and the balance between them and the private banks
They called for the issuance of e-dinar and the introduction of the local currency in the banking system
(Independent) / Rahim Al Shammari / .. experts, money and the economy Iraqi stressed at a seminar held by "Institute of the progress of the policies of development" on the necessity to speed up the restructuring of State-owned banks in the framework of the reform of the banking sector in Iraq policy in order to achieve a sound development in the country .. proposing to issue dinar mail and enter it in banking transactions, particularly in the area of government levies, as well as work hard to attract the Iraqi currency and introduced into the banking system to encourage the process of saving the banking ..
Independent MP Dr Mehdi al-Hafez called for the promotion of the banking sector, both public and private .. returned an essential task in terms of the desired national development
Al-Haafiz said that the Iraqi banking sector fails to become a major dilemma must work on them by the concerned economic reform, explaining that the large size of government banks and the local economy exceeded the needs which led to the creation of a big obstacle to the benefit of the banks important economic force in investment overall cash deal.
Hafiz and called for a restructuring of these banks, especially banks "rational" and "Two Rivers"
He noted that the World Bank has issued several years ago, an important report on the recommendation of the Ministry of Finance and the Central Bank on the financial situation in Iraq showed this report that the banking situation is the appearance weakest in prevailing in Iraq status report recommended restructuring and ensure equal treatment of the sectors of government and private banks, and the weakness of this banks represents a fundamental weakness in the financial and monetary situation in the country.
He expressed regret for not taking any measures or treatments or to restructure the banking solutions, even in the framework of the government program does not find a clear vision to reconsider its banks develop and enable them to support the private sector
He asked Hafiz: Is it possible to continue this case with a large state banks and the banking sector in front my family more vulnerable. He pointed out that what has recently taken measures were related to certain aspects of the banking performance by changing the leadership of a number of State-owned banks
For his part, reviewed the appearance of Dr. Mohammed Saleh, the financial advisor to the Prime Minister and the reality of the government banking sector, indicating that the sector is made up of seven very large banks acquires the banking arena is absolutely up to 91 per cent of banking assets and up to 86 per cent of the deposits of the banking system and thus the formation of this government deposits in sizes up to 65 trillion dinars until the end of 2015 of which 45 trillion dinars, government deposits and deposits of 19 trillion and 10 trillion civil ones with the bank "good" and "Two Rivers" and 9 trillion to the private banks.
He said this concentration in government banks reflects the nature of the Iraqi economy and shows the role of big government in the formation of gross domestic product, which is at least 65 per cent. This means that the private sector has only 35 per cent. This means that the financial state and entity dominates everything, and on this basis the government assets ratio to GDP constitutes its own 110 per cent of gross and has total assets of 220 trillion dinars, of which 110 trillion for the banking sector, the government and 10 trillion for the banking sector Ahli, who has a number of its banks from 54 banks,
Salih noted that capital and reserves proper ratio to assets within the budget amounting to only 2 per cent which corresponds to the global context in terms of shape and look and our banks had live current modern globalization ..
He said either the private banks are still living the nineteenth century conditions and therefore, there mentalities in fiscal policy does not have any harmony between them, explaining that the liquidity of the sovereign government is the support of government banks and this means that the investments are in government funds itself through treasury transfers to the amount of capital ratio the investment is about 34 per cent, while the cash credit amounts worth 36 trillion, of which 29 trillion the government banks go to the loss-making companies borrowed or salaries for the staff of the republic form of advances or other, and this is about 50 per cent and the remaining 50 bars for Bsaullac surplus as in Rasheed Bank as an excess Alsaullac to 80 per cent and that the meaning of this loser and 7 trillion to the private banks.
He pointed out that the dilemma that the government is borrowing from its funds, such as a cash cow drink milk because of the lack of true system shows the direction of government funds and uses flows for this forced the state to issue treasury transfers
Salih noted that banks and government practiced style universal banking since 1997 to get rid of the burden of support Mauld great contradiction has produced a lot of problems and means the overall banking that few cash payments facilities go to the large number Kasirvh segmentation either large monetary easing go to the few, a trade .. Indicating the mentality that banks are control it government departments or companies and therefore are not subject to many regulations and laws procedures exercised by the central bank to bank, so the bank supervision totally disabled on the government banks
He spoke in favor of good governance to separate management from ownership, accountability, transparency, and this can not be easily achieved because the mechanism is working properly causing it to disable boardrooms because of the large interventions by the ministries in the work of banks.
He said that the capital adequacy task of money offered by 4 per cent which is low in front of the Iraqi standard of 14 per cent in the absence of verification of this figure, it is the right of the central bank custody bank for Aahakq this percentage to set up, but the problem is that the central bank, he can not resort to this measure with government banks because they Masssat government here has to be a restructuring as a substitute for custody ..
He noted that government banks are big banks dominate 47 per cent of bank branches scattered across Iraq by 1300, numbering more than a branch ..
Saleh also highlighted the existence of a strong political will of the government to restructure State-owned banks have been formed a committee headed by the governor of the central bank and there is a sub-committee to follow up the issue of restructuring and began Commission is working with the World Bank that has given us through the four stages of the roadmap ..
And revealed the existence of the will of the masses to stand against the process of change in the banks .. adding that the first phase of the road map are checking bank accounts and the second is the establishment of the company shall prepare Moisntin one graphic and realistic clean .. The third step is governance administration by providing the government banks international experts to create a homogeneous banking market .. The fourth step they are re-capitalized with capital Rafidain and Rasheed, and this stage must be completed within 18 months. .Stressing the need of making the legal restructuring of the banking unify visions and restore the prestige of banks and give power to the boards of directors of government banks qualify to enter the banking market.
For his part, head of the Iraqi National Action Council David Abdul Zayer spoke about the restructuring of State-owned banks in the framework of the timeframe specified technician takes into account the accumulated problems in these banks to the extent that the recovery of the value of loans lagging behind ..
He said the last budget announced by the Bank of Iraq amounted to 125 trillion dinars a figure astronomical exceeds the state budget, and we all know that this number does not exist and is not accurate .. pointing out that there is uncertainty and uncertainty regarding the government banks and therefore should not implicate the new administrations of these problems and must be stopped work to be audited by an international company ..
He Zayer that the Fed with the central bank does not function on according to the new global regulations, and what is required is that the bank takes lending from the reserve transaction rather than deposits lenders, as a result of failure to apply this mechanism, there is 77 per cent of the local currency is outside the banking system and this represents a death certificate for the Iraqi banking system, because the rest is a government deposits.
He stressed that the fight against corruption starts from the introduction of local currency into the banking system, calling for the issuance of e-dinar by Rasheed Bank or the government of Iraq and all the levies that will help us to achieve a great leap in banking policy.
He criticized many of the mechanisms and procedures followed by the State-owned banks, including the issuance of certified instruments which cause too much suffering to the citizens, calling for the Ministry of Finance to issue bulletins proactive as is the case in the world to see the future of the national economy and thus reassure the owners of the money and merchants.
Economist Majid picture representative of the Association of private banks said in his intervention to the need to restructure state banks, a move that should have been completed since the previous year .. attributing the delay of this project, which began in 2009 to the absence of political will, or they are contrary to the interests of this party or those as well as the lack of understanding of the banking business with the lack of transparency and separation between policy and this image produced havoc arrived even to the private banks.
He called for the adoption of a comprehensive banking system for the advancement of the banking business in Iraq .. warning of privatization of any banking institution by restructuring .. He pointed out also that the specialized banks did not deal positively with the central bank's initiative and take advantage of a loan of 5 trillion dinars, which awarded for this banks to provide loans to the private sector.
Director General of the Rafidain Bank Dr. Khawla al-Asadi confirmed that all restructuring restrictions have been completed since 2008 .. indicating that the bank Rafidain and Rasheed Saouhdan work and putting the mechanisms developed for the advancement of the banking their work .. denying that the real budget of the Rafidain Bank are to be 125 trillion but is 25 trillion only dinars, adding that banking secrecy only the names of customers, account numbers and otherwise limited Fbalamkan it was announced this shows transparency.
Asadi and complained of the absence of good cadres and banking expertise with an incompetent cadres, noting that he can not be at the revaluation find 231 trillion differences re-evaluated and are in fact not to exceed a few million
Iraqi business Zainab al-Janabi lady expressed her grief for the existence of a significant gap between the staff of the fiscal and monetary policy in Iraq under the corruption and worsening debt on banks .. pointing out that the situation in Iraq is unlikely more than afford it because the banking reform process must be completed quickly and not in a year and a half, according the agreement with the World Bank
Economic expert, Dr. Abdullah al-Bandar said that the general economic situation in the country is a clear Vodouh economic policy is to create a sophisticated banking system and not the opposite, calling for the development of monetary and fiscal policy are clear before starting to talk about reform and restructuring of State-owned banks process.
He stressed the need to develop a sound banking behaviors and the prevalence of advanced banking culture .. proposal to hold on to one bank in Iraq, a central bank and the abolition of all government banks and transferred to the private sector.
Banking expert Adnan Chalabi raised the issue related to the freezing of funds belonging to private banks in the capital of the Kurdistan region were not taking any action to resolve this problem and restore capital banks amounting to about 90 per cent. (End)