Islamic Banks Association announces the presence of 17 Islamic banks in Iraq

Islamic Banks Association announces the presence of 17 Islamic banks in Iraq

President of the Iraqi Islamic Banks Association Sadeq Al Shammari
 

The head of the Iraqi Islamic Banks Association Sadiq al-Shammari, to establish a market for the capital of Islamic banks and the creation of long-term tools enable these banks to diversify their sources of funding and expansion of the grant, and to address the existing imbalance in their balance sheets, and how liabilities and asset management. He said that it would help their involvement in projects and a variety of formats available to the sector.

Shammari stressed in an interview to the newspaper "life" of London and followed the "Economy News", the need for the "Islamic banks establish specialized departments looking for investment opportunities, and plans for the future of finance is the economic feasibility studies." He believed that such a move "will allow banks to take an integrated investment decisions, and thus reduce the risks arising from the financing formulas participation and speculation." It did not lose sight of the importance that "the Central Bank of Iraq is required to provide Islamic banks to finance the banking gathering for large projects, which will lead to overcome the small size of the existing banks' capital, and limited capacity to finance such projects."

Shammari announced that the reconstruction and construction phase in Iraq "need to mobilize their own energies and securing investment funding opportunities from all sources and for all citizens, making mechanisms of the Islamic banking need." He pointed out that the activity of Islamic banking "began to exceed the scope of traditional banks to include the accession of a number of global Western banks," pointing out that "City" US Bank is one of the five most important banks in the world, "Fleming investment" British bases specific to each of them circle, operate according to Islamic banks patterns and activity. "In addition," the start of a number of Arab and international banking institutions fight in the Islamic banking experience through the creation of sections or specific to this type of banking branches. "he said," it shows how important that can be by the Islamic banking institutions in pain Accept, and areas of development and in providing advanced and innovative products. "

He said that "the issuance of the Islamic Banking Act No. 43 of 2015, is an effort to restore Iraq's role in attracting investments advanced as a hub in the region, especially since the law exempts Islamic banks from some of the constraints of conventional banking operations control, despite the fact that this is due to the different nature of deposits the funds deposited in Islamic banks. "

Shammari stressed that "such steps will push the Islamic banks to play a bigger role in the economic cycle, because they differ from conventional banks, they are not only the role of financial intermediation but to exceed its direct business and investment."

And thus it is "closer to the goals of the Comprehensive Bank, which includes social, developmental and religious areas and the welfare of society." He pointed out that "Islamic finance formulas are characterized by high flexibility, making it develops and innovate always appropriate formulas for each type of funding."

Progress achieved by the Islamic banking has not been lost, in terms of "the growth of the number of institutions, customers and assets since its inception in the late sixties of the last century." He stressed that the Islamic financial and banking industry, "one of the fastest growing sectors of banking, as it exceeds the growth rate of the traditional banking sector."

He did not rule out that "Islamic financial and banking industry is witnessing widespread, especially in terms of improving the quality of services and innovation of new products to reach a wider base of customers."

He stressed that "the essence of Islamic banking lies in the differentiation from traditional banking, both in terms of mobilizing savings or in the provision of financing for investment and commercial activities of individuals and institutions, public and private mechanisms of tools."

Therefore it called for the need to "innovate and develop its products and financial and banking tools, to rise to the consolidation of the banking base without benefits, because the development of financial instruments is the cornerstone of what it represents to raise savings mobilization and channeling of resources on investments and financing needs efficient."

Shammari announced that the Islamic banks "an essential role in achieving social development and make a quantum leap in the world of banking and encourage economies and revitalization, according to the norms of Islamic Sharia." He reported that the number of institutions offering Islamic services in the world "has increased from about 955 in 2013 to 1.113 end of 2014 Foundation, operates in 75 countries. The boat number of customers around the world 100 million, however, there are more than 75 percent of potential customers for funding base Islamic untapped sector still has a large capacity can accommodate more customers. "

He concluded his speech that Islamic banks in Iraq and of the 17, accounted for an important part of the Iraqi market, especially after the legislation No. 43 Law for the year 2015, which the Iraqi Islamic banking systems, what should expedite the issuance of instructions for the implementation of the said law, especially after the granting of a license to more Islamic banks capital of $ 3 billion. "

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