Iraqi banking environment needed for sophisticated international banks to create a competitive atmo

Specialists: Iraqi banking environment needed for sophisticated international banks to create a competitive atmosphere and the transfer of expertise and technology

19-02-2013 | (Voice of Iraq)

He attributed the number of MPs and experts in the field of banking reason behind the Iraqi banking sector for the global to the old legislation, which is still followed by the local banking system.
Calling during their talk (of the Agency news) to the need to encourage international banks to open branches in Iraq to create a competitive atmosphere among local and foreign banks and to benefit from the transfer of expertise and developments in the banking industry.

The association of private banks announced for the desire of many international banks to enter the Iraqi environment for the purpose of employment and participation in the country's banking.

The administration British Standard Chartered Bank announced its intention to open three branches in southern and central Iraq and north, indicating that foreign companies operating in it, especially the British and Korean are looking for financial services "more supportive" in their work there.

The executive director of the Association of private banks Abdul Aziz Hassoun (of the Agency news): The international banks have cravings to open branches in Iraq or contracting with Iraqi banks to participate in its work and transfer technological global banking to it, noting that negotiations are still ongoing with bank boards of directors, and that the coming period will witness more of an international bank participant with an Iraqi bank.

He added: that the goal of international banks to operate in Iraq came for the purpose of their usefulness primarily through earn a profit, but remains on Iraq to take advantage of the existence of such banks in training and transfer of expertise.

He noted: that the Iraqi banking system consists of (50) banks, manages all things financial and banking in the country, so it does not need foreign banks, adding to say, that international banks come to Iraq to take advantage of some of the facilities granted to them by the laws of the country for the purpose of work and seeking profits.

As vice chairman of the Finance Committee Ahmed Hassan Faizullah, stressed the importance of encouraging international banks to open branches in the country, to take advantage of the expertise possessed by those banks and the development of the Iraqi banking sector.

Said Faizullah (Agency news): The Iraqi banking environment desperately needs to enter international banks known to contribute to economic development through financing for investment projects, as well as gaining experience and modern technologies in the field of banking.

He pointed out: that the investment process in the country require the presence of a sophisticated banking system to facilitate transactions and to ensure investor money, so must find a sophisticated banking system in the country.

While a member of the Finance Committee MP / National Alliance / Amin Hadi Abbas, stressed: that Iraq lacks the advanced banking environment technology, which led to a large gap between the work of local and international banks.

Abbas said (of the Agency news): The main reason for failure of the Iraqi banking system due to legislation old that do not fit with the banking systems of recent global, they need some amendments into law banks for the year 2004, as well as the lack of joint work between local and international banks in foreign investment .

He added: that the central bank demands develop mechanisms and conditions of local banks needed to update its mechanism according to modern techniques and new technological developments to facilitate dealings with international banks and attracted to open branches in Iraq to contribute to the promotion of the economic development process in the country.

The central bank has set a three-stage plan to raise the banks' capital to $ 213 million by June 2013 to stimulate lending at a time when Iraq recovers from Chapter VII sanctions.

It is noteworthy that Iraq has seven banks owned by the state, and 23 private banks and eight Islamic banks in particular, according to the site's central bank, while dominated by the banking sector banks Rafidain and Rasheed, and subject currently restructuring in order to pay off the debts accumulated after years of war and sanctions.

Although the Investment Law No. 13 of 2006 has excluded investment in the banking sector of its provisions except that the investment in the banking sector takes its legal framework based on the legal central bank No. 56 of 2004, banks No. 94 of 2004, with a minimum to create a bank in Iraq 100 billion Iraqi dinars (ie around 85 million dollars.

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