Trust the Central Bank banks raise the ire of economists

Trust the Central Bank banks raise the ire of economists



06/09/20140 Comments
 
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The announcement of the Iraqi Central Bank to impose trusteeship Economy Bank for Finance and Investment angry reactions to economic experts, in time some criticized the absence of a law regulating the work of banks in Iraq, others questioned the fate of letters of guarantee and credits issued by this bank.? As others point out that this procedure will make the citizen and investor confidence in the banking system is weak Iraqi general, which will make the private sector completely paralyzed. And the development of the Iraqi Central Bank, on Wednesday 06/04/2014, Economy Bank for Investment under guardianship, while pointing to his commitment to promote and protect bank customers. According to the newspaper term
He sees Hassan al-Asadi, said the problem in Iraq, we do not have a law regulating the work of banks, whether governmental or private sector, banks are now working without civil law, so that the central bank does not allow for investment, including investment and this is a great paradox. Al-Assadi says this mess that led to a disruption in the banking business, which is the most important reasons that led to the paralysis of the year in the private sector, which produced a negative decline in the economy, day after day.
He adds, that this mess is natural that the resulting decline in a bank or a rise in other banks abnormally, it can close the central bank some banks and put his hand on them, because they can be had exceeded its allowable limit her by giving letters of guarantee and traded loans have exceeded the allowable limits is odd.
Shows, but the central bank peek even in the laws laid down to regulate the work of private banks observer senses that imposes restrictions curb the movement of these banks and this is definitely a negative impacted heavily on the work of banks.
And calls for al-Asadi, the central bank to go to organize all of these things, including his work is, being transformed from a central bank is responsible for monetary policy in the country, to a mere field for the sale of foreign currency Ohz itself a big problem, which is why all the chaos in Iraq, the economic aspect .
For its part, suggests an economic expert safety Sumaisem, that this procedure will lead to lower prices for shares of Bank Securities market economy, which will make the public attitude towards the affected private banks and by the turnout and handling.
She says in an interview (range) that we should ask ourselves what is the fate of letters of guarantee and credits, issued by the bank, and whether the central bank will bear the full consequences of that particular bank is suffering from financial problems since for quite some time.
She Sumaisem, here I must mention that the law not to issue a realistic private banks to help more of this mess, but the rule of uncertainty in understanding and performance of private banks.
He says economic expert on behalf Antoine, the investment activity to rebound until there must be a genuine banking system and on the Iraqi government and the central bank to strengthen and support this activity and any improper actions taken against banks may be signs of weak investor investment environment.
And sees the interview (range) that required the central bank to reconsider some of the decisions and supports private banks, to address and put it in a transparent manner, he may put custody or control, but this does not serve the economic process in general.
Antoine and stresses the need to be given additional time to these banks, especially those with returns such as real estate and others, including that there was no wrongdoing essential to her, it is not true that punished in this way.
And refers to, that these measures make the citizen and investor confidence is weak banking system in general, at a time when we are moving the market economy on the basis of the existence of banks, private sector and civil strengthen its role and support.
In the opinion, including that these banks have opened more public holidays and law firms by the central bank, of the error committed against these banks is to prevent the state departments of dealing with them or accept their instruments, or bid farewell exaggerated, and this was a big bump in the way of the work of these banks.
He continues, wondering, why the government treats the bank privileges large reverse National Bank while the latter works with great transparency and speed in work and achievement and great efficiency, but he also yes it was alright to keep control but may not be dealing with this form of private banks.
According to the central bank, it was based on conducted this to the Banking Act No. 94 of 2004 in Article 40 that authority to supervise and control the banks operating in Iraq, the text of paragraph 1 of Article 59, which refers to appoint the CBI guardian of the bank when the central bank decided to that the bank does not meet its financial obligations when entitlements.
The majority of private banks in Iraq earlier governed by the Banking Act of Iraq, indicating that allows banks to the government monopoly of the banking business, especially after the release of the new guidelines, which called for private banks to raise their capital to 250 billion Iraqi dinars, at least by 2013, and Fimaoharoaaly that this decision-making private banking sector semi-paralyzed and unconscious of its flexibility.
No longer put trusteeship Economy Bank for Investment was the first of its kind in the Supreme Judicial canceled 12 - March -2013, and the tutelage of the Central Bank of the Warka Bank, after the board decided to put the Central Bank of tutelage on 29 - 2 - 2012.
The Bank was established to invest in the economy 22.03.1999, as has been included in the stock market on 02/01/2005, and the bank has 50 branches located in different provinces of Iraq with a capital of one hundred and fifty billion Iraqi dinars. 

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