Mobilize resources for development requires a sophisticated banking system

Mobilize resources for development requires a sophisticated banking system

03/04/2014




Dentex: banks have a significant role in the next phase
BAGHDAD - Farah pumice
When expanding the limits of development increases the need for more sophisticated banking system and broader service center, so contributing to the banks in an effective manner in the process of economic development by providing the necessary resources to meet the basic needs either directly or indirectly.

The objective of the financial sector to mobilize the necessary resources for economic development through the banking system or the insurance sector or through the Iraqi market for securities leads to an increase in the value-added services for the use of technology and the provision of foreign exchange through remittances.
President of Baghdad Provincial Council Riyad dentex said "morning" about the importance of the banking system: "To lead the banks developmental role and funding well in the next phase, it is necessary to exceed five major challenges that will delineate the features of a sophisticated sector."
According dentex the first challenge, "based on the need to support the banking sector on government projects, local small and medium as a gateway operating and employment in the community suffering from high unemployment, to have a supporting role for growth through the supply of larger projects with raw materials or intermediate goods or semi-processed to Besides logistics services Other activities, such as transportation, packaging and sub-activities, or contracting. "
He said in what he called a second challenge to "The activities of the parallel economy does not depend on the banks either in funding or deposit receipts resulting from it, with depriving the banking system, the amount of liquidity massive spill, mostly in the operations of a consumer or freeze the proportion of it in real estate and land, and then did not benefit them productive economy, "as well as" low rate of coverage of banking in the Iraqi market, compared with the population, as it does not exceed this percentage 29 percent now compared to 70 percent on average globally, and not more than the number of bank accounts in all the banks on the five million account almost include the accounts of individuals and companies and even public bodies ", the according to the so-called third challenge. In regard to the fourth axis, said dentex" It is the policy of concentration of credit on both the borrowers and sectors of the economy, "calling in this regard to the need to reconsider these policies so that they are more justice and bias to economic diversification in various fields. also noted the need to resort to the banks more creative effort and creative in devising mechanisms of action in the areas of recruitment, employment and generate profits as a result of a real useful for the rest of the local projects, V. challenge.
However, he pointed to "the lack of a banking system developed leads to the flow of foreign investment participation in economic activity, as the most important conditions for the success of these investments and the presence of a device capable of dealing efficiently with their needs, whether those related to borrow different types or relating to relations of Foreign Affairs, or ensure that corporate money invested, "stressing that this means the existence of" a strong correlation between the banking system and the development process itself. "

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