28/10/13 12: 00 am
President of JSC «morning»:
Put up a proposed deal to raise capital from private banks, by merging with each other to form gigantic banks be solid base of investors.
President of JSC Dr. Abdul-Razzaq Al-Saadi said in the SMC (morning): "the Central Bank's decision, which was issued two years ago by the private banks ' capital increase resolution is correct, and to encourage them to increase their capital to be in or near global filters", but in the modern "as in the experience of Lebanon when banks had small capital, the Lebanese Central Bank plan encouraged the integration of these banks which contributes in the capital and become The giant Bank after the merger."
The Central Bank has issued instructions in February 2010 which recognizes the obligation of banks approved to finance increased their capital to (250) billion dinars during the period of three years from the date of this decision and to be (100) mliarkhlal one year and (150) billion dinars during the two years of up to 250 billion over three years from the date of the resolution.
Al-Saadi said that money supply in the Iraqi market is limited to investment in this sector, and called on private banks with capital to merge with each other to be solid and strong banks, especially the Giants invested with broad large banks merging together and then expand investor base.
The President noted that the process of integration and concepts very difficult for owners that some families of Iraqi-owned banks, believing the banks family's future is weak, unlike the banks owned by more than one party in a more advanced society and be of benefit to everyone, as the performers less than single dinar and therefore no returns and good profits.
However, Al-Saadi called for the Central Bank to demonstrate flexibility, incentives for the merger of private banks to make it strong and sturdy, urging these banks on a solid plan for integration.
The President drew attention to the banks that did not increase the capital suffers from several problems, including the issue of marketing, capital and trust of industrialisation, it, considering that this situation affects the stock market, the money supply in the banks would be reduced to withdraw capital, especially that some of these are listed on the stock market, the market value will be lower because their profits will be limited and thus affect the market.
Saadi noted the need to give a wide area of action and encouragement to private banks in all its aspects, on the other hand we must stress the Central Bank control over the movement of these banks to operate within the context of a market economy and the direction of the Iraqi economy, saying the Bank must engage in business, so has to be cooperation and interaction in the development of private banks, not to market economy without growth, private sector banks and this is not in Iraq at the present time, he said.
The President stressed the importance of controlling the money supply to combat money laundering if the money of people with a clean banknote are given enough space to move as he pleases, especially that market economy does not have the black markets to sell stocks, but the principle of supply and demand in the money market, the clean money identifier to mean every person placed in his account amounts exceeding $10,000, you should disclose the origin of the funds, as applicable in most countries.
He urged Saadi ministries to put their funds in private banks for their support and encouragement to promote private banks in the country, support the movement of investment and increase investor confidence in the banks.
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