Eyes of international banks to Iraq amid many questions

Eyes of international banks to Iraq amid many questions




Friday, July 26, 2013 09:46



Baghdad: show global banks, including "Citibank" and "Standard Chartered" desire to find a foothold in Iraq, but this desire is often hit by several negative factors in the country experiencing political عراكا and security tension sustained.



With tens of millions of potential customers who have only a few of them bank accounts, it has become Iraq represents an ambitious target of banking institutions, particularly that the Iraqis are currently looking to banking services is greater than those available to them.



However, the long-standing laws, predominantly banks controlled by the government, and weak infrastructure for this sector, in addition to a huge number of obstacles Other Kaerak, the ongoing political and security situation deteriorating, make banking activity in the country is not guaranteed results.



He says a Western diplomat told AFP that "it is very likely that Iraq is a rich market for banking to work."



He returned to talk about the Iraqi market during the past few weeks after starting the major banks, including "Citibank" and "Chartered Stnadrd" of moving in an attempt to consolidate its presence in Iraq.



And says مايانك Malik, director of the bank, "Citibank" in Jordan and Iraq, told AFP, "We look to Iraq as the next biggest target," adding, "We see in Iraq preparing for the advancement of giant."



"We consider ourselves among the top candidates, and we want to have the top priority."



The bank will "Citibank" in the beginning to serve existing customers, who are working within the energy companies operating in the oil-rich fields.



But in the long term, the multinational bank will seek to move into the commercial banking business and service, although no timetable has been put in place yet. He holds "Citibank" great hopes for Iraq, which bank economists predict that Iraq has a population of 50 million people, the economy, worth about $ 2 trillion by 2050.



The latter figure represents 15 times the current capacity of the economy, and roughly equivalent to the size of India's economy.



With the development of the sector, to become full banking services are required, because the front of the Iraqis are currently limited opportunities in obtaining loans, insurance, credit cards, mortgages and other services.



The owner shows optimism about the potential of the banking sector in Iraq, waving key obstacles to the development of this sector.



At a time in which it decided "Citibank" to open an office in Iraq last month, the bank "HSBC" announced later that he was withdrawing from the bank, "Dar es Salaam" local who owns 70 percent of its shares.



The spokesman said, "HSBC" that "at this stage we can provide more details about the process of change and timing."



But diplomats and analysts pointed to a number of difficulties including the lack of modern systems to give Iraqis confidence in the banking process.



Even Iraqis who have bank accounts, they are not able to use the ATM or online bank services or even the ability to access their accounts from different branches of the same bank.



And some credit cards issued, but there were no places accept to deal with it.



A Western diplomat says that "conditions are not well suited to engage in individual banking services."



And companies often complain that local banks are unwilling to lend, or it demanding assurances expensive and unacceptable.



And the withdrawal of the World Bank estimates, the Iraqi bank credit amounted to less than ten percent of the gross domestic product (GDP) in 2010.



By way of comparison, that figure was about 55 percent in the rest of the Middle East.



Thamer Ghadban says chief advisers of the prime minister "must avoid the accumulation of cash within the government banks, but rather use the money to lend to even be a part of the system of the private sector."



The angry adds that the required "best technology, as well as reductions in processing times and Securities and staffing levels. And there is also a need to change the attitude toward customers."



"The staff of the bank does not give them the service but on the contrary situation," he said, adding "they must attract customers and not push them out."

[You must be registered and logged in to see this link.]

Because there is so many gullible people in the world!