Ways to privatize the Iraqi banking activity and financing for development first part D.raad Twigg

Ways to privatize the Iraqi banking activity and financing for development first part D.raad Twigg

Part I
D.raad Twigg
Preamble:
Saw the Iraqi banking system developments and transitions, and numerous paths variety in different points in time, and identified political philosophy and economic and financial conditions that prevailed at every stage, the features of the banking system and other economic sectors, linked to political philosophy and economic and financial conditions in each point in time, and moved the Iraqi banking system from Bending of the free market and then the case of co-existence between the public and private banks, the government monopoly Alyoda full banking status of coexistence and then again.
It is axiomatic that requires the attainment of the desired maturity banking activity, political stability and a long time, and a steady trend in the management and ownership of the institutions. Chapter Alambgesan the following: -
The first topic: - intellectual perspectives and shifts in banking activity.
The second topic: - determinants of the Iraqi banking activity.
The first topic: -
Intellectual perspectives and shifts in banking activity
First: - The importance of banking activity in thought and economic history: -
The civilization of Mesopotamia and the starting point for many of the achievements of banking and reported by different nations, and taking the banking business forms and multiple concepts in the context of the process of religious holy, and considered the temple Sumerian Nativity who embraced this activity and the greatest degree of secrecy, and that the process of revealing and reveal the secrets of this activity, I mean they have to solve the curse of God, to those who commit this offense.
It is worth noting the emergence and maturation of banking activity Babylonian and Sumerian form of inspiration and reference for many of the countries in devising many of the banking practices of contemporary such as confidentiality in banking, depriving traditions and banking laws of these countries and varying certain disclosure and advertising on the accounts of their depositors and their amounts for others, whatever the legality of excuses to disclose .
But the mechanism of banking activity Babylonian and Sumerian Vtaatmhor in existence and the continuation of the flow of the sources of funds provided to the gods, are deposits of different offerings and gifts in kind. And these amounts are lending or deposit by priests to merchants and farmers, in order to increase the effectiveness of economic activity, recovery, and by the last of these deposits have been used to achieve social goals by allocating part of it to liberate the prisoners and slaves.
In return for these different types of loans, gets the priests on the price of these processes, activities, and are equivalent to what is currently known as interest rate and fiscal surpluses remaining Lama maintains a reserve for them.
On the other hand included law Hmouarba on many aspects of the banking business, the rules and the mutual obligations of the different parties, as well as to determine how to calculate the returns of loans and payback period and the limits of deposits and loans, to eliminate situations of exploitation through the banking regulation and supervision.
And moved the basics of banking concepts among the Greeks and Romans through the Phoenicians.
And requests a business trip to the Arabs and the winter and summer, and there are some in the business banking market Okaz.
The evolution of the art banking after flourishing international trade and the beginning of the industrial renaissance, and began the first phase of this development impact for asylum merchants and wealthy to goldsmiths to deposit valuables and gold coins and secure from the risk of theft against the issuance of the goldsmith's receipts stating the amounts deposited with him.
And accumulated the money in the coffers of the chapel without exploitation and survival stalled, prompting open the door wide open in front of a certain interest rate and lending, and keep the rest in reserve portion, and thus completed the basic dimensions banking usher in new horizons for the development of banking.  
The banking activity and its role focus of attention of many of those intellectual economic, but also the subject of disagreement about the importance of banking activity, has ruled out a classic no possibility for banks to expand credit creation greater extent than its cash reserves as capital paid or deposits a major, and only the role of banks in the limits of mediation Finance conversion and payment methods in order to achieve the main objective to get the maximum profit possible.
But the look of economic thought to this matter exceeded the limits set by the views of the classical school of banking activity and intellectual trends emerged gave the other dimensions to this role, Fowlie economic Schumpeter in 1911, a growing interest in the banking system and its positive effects on economic development.
In this regard, see Schumpeter that the expansion in bank credit will be followed by economic expansion and that the positive impact of this expansion to increase production and incomes in cash and Seoul that the liquidation of credit and to recover in a short period.  
And differed from the neo-classical Alkatzion new in them after a monetary expansion to include capital assets without confined to financial assets.
In the same regard, the study concluded Curley and Showa to the bank credit stimulates the production process.
Also addressed the theories banking dimensions of banking activity centered on this activity or so, has called the theory of commercial loan to limit the activity of commercial banks to grant short-term loans and for commercial purposes exclusively with AutoFilter and exclude loans for other purposes (real estate or investment), and maligned on this theory that this mechanism in the liquidation of the credit has not taken to occur in the case of
Exposed countries to crises and economic instability, and the conduct of banks and commitment to this theory may Aasahm in the events of capital accumulation in developing countries, and reduces post banks in the development of the infrastructure of these countries.
And I was born this theory in the womb of the state adopted propositions classic which England and Tnagmt their platforms with the early time of the industrial revolution, Vamtazat projects wearer to achieve significant returns make them indispensable for long-term loans and limiting the demand for short-term loans and loans operational and commercial nature and the exclusion of loans for the purposes of real estate and investment. It is the other theories is the theory of substitution or replacement  shift ability theory and put this theory, the positive results of the continuation of banks in providing short-term loans in addition to investment in securities, and contribute to these investments in the provision of liquid assets at the banks, which can be converted into cash quickly and without loss allowing opportunity to strengthen the financial position of banks of different where the liquidity position well, which increases their ability to cope with any sudden and which gives it the ability and flexibility to the process of conversion and replacement, and maligned on this theory that this process may be slowing in the event of economic fluctuations.
The other theory is the theory of expected income and taken turn expansive with regard Banchat banking, to include the provision of loans, medium and long term, in the light of expectations about what is achieved by banking institutions from revenue and maligned on this theory that the expansion of long-term loans for a particular bank may be offset by a decrease in the volume of liquidity at this bank, in spite of the requirement of this theory that there should be a study of banks in the credit worthiness of cash for the client, and determine the amount of income that can be expected to accomplish projects on the grounds that the borrowed cash flows and sustainability are fundamental guarantee to repay these loans.
What posed this theory may conform with what posed by German School, which let to provide long-term loans and financing economic projects and the participation of banks in the investment process and have been applied in a practical way in the reconstruction of Germany after World War II and use this approach also by the Bank of Egypt, which was established in 1920.
 

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