The process of reform and restructuring Iraq's banking system through private banks

The process of reform and restructuring Iraq's banking system through private banks

By:Mahdi Al-yasiri - 30-07-2013 | (Voice of Iraq) | Printable version

Private banks are certainly an important part of the financial and economic system of the country and the Central Bank of Iraq is considered as a reference and must go according to plans and instructions prescribed by them as long as is responsible for monetary policy, which is based on the work of these financial institutions, governmental or private banks and the fact that these institutions are in direct contact with citizens, is that you move the Central Bank policies and their application on the ground

For details on these issues related to Bank United Bank for investment clear vision toward restructuring the Government and private banks which will reflect and develop the Iraqi banking reality down to the global banking sector and in this area in more than one Conference and United Bank pointed out to the need to study the law of the Central Bank of Iraq and build a modern banking system, given that the Iraqi banks is a major partner in social development and the need for serious steps in economic liberalization through economic reform programmes and the banking and financial And support the development process through the monetary policy towards encouraging real investment and development opportunities in that sector

Iraqi banking serious steps and real steps towards expansion at the local level and increasing capital and this if anything demonstrates real direction for the development of all business

The United Bank investment aims to be comprehensive and distinct Iraqi banks in banking and financial services, hopes to establish a relationship of trust with all its customers to be a real contributor in achieving their ambitions with the sincere desire to compete with Sharif in the field providing banking services to achieve appropriate and legitimate interest to employment commensurate with the size and management of the Bank in providing better services to citizens in the direction of building a sophisticated banking system, according to Bank policy and orientations of its Governing Council, which in its priorities the adoption of banking policy actors That is consistent with the expectations of the Central Bank of Iraq and the stability of the market and active role in supporting the Iraqi economy and to open private banks prior to 2003 was aimed at raising much of the then existing Government almmsarf but after 2003 and the change of the economic system of free economy restricted economy and as part of the free world economy laitgzaa became the responsibility of the bigger and more important decision was therefore raising its capital to 250 billion Iraqi dinars to can keep up with The new economic development requirements and the Central Bank has asked banks not able to access to such capital or merge with other banks or pull one

And here we must say that the process of restructuring the banks is understandable that small capital cannot promote new Iraqi economy under globalization and the world economy

And some of the Iraqi private banks overcome many obstacles and imposed themselves on the economic stage in Iraq without those they were serious in their products and have direct contact with the citizens ' interests by supporting the investment policy and the other a lot of bureaucracy to the success of these banks and the solution to this dilemma to be reproduction law civil and edit banks of unnecessary controls contained in the companies act

And here it seems very urgent need for comprehensive reforms of the banking sector to promote this fact particularly article 28, exists in the law of the Central Bank of Iraq and to prevent banks from doing any work helps to improve banking except provide loans and advances

And there's action in financial and economic parliamentary Committee emphasizes the need to reconsider this law through Committee restructuring government and private banks to give the role and freedom of civil and private banks, which parallel the foreign banks which will come to Iraq in the future

We are also of the advancement and ambition in promoting banking policy of a number of proposals which we consider necessary in this aspect

Proposals

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I. amendment of the Banking Act eligibility

II. amendment to the anti-money laundering Act

III. the obligation of government institutions to deal with private banks like State banks

IV. reduction of Government pressure on some policies of private banks and give them a lot of freedom of movement in order to be able to keep up with the economic development of the country and promote investment opportunities for non-Iraqi investors by creating an atmosphere of mutual trust between banks, on the other hand, the investor

 



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