The banking sector and the responsibility of the development

The banking sector and the responsibility of the development




03/27/2013 12:00 am

Mohammad Sharif Abu Maysam

Consistent across observers and researchers in regard Iraqi banking, the banking industry in the country and in spite of all attempts to catch up with the global banking industry, still in the first stage of the phases of growth and that I got a lie Bekaa down from the stage of the previous dictatorial regime, and this perception after more nine years of hard work by the relevant authorities in the development of the banking sector is behind the International Monetary Fund does not involve excessive in the evaluation as the painful truth of this sector.
As the reality of the situation indicates Over the past years to support unrivaled by the Iraqi Central Bank Pan banks (public and private), either through restructuring programs that tried to contribute to the development of the work of these banks through (to help them introduce technologies in the banking and personnel training and directing to restructure their capital) or through the mechanisms of action tools of monetary policy (which was described then Balancmashih in time led it to accumulations financial returns these banks due to the benefits of investing Night At odds are awarded by the currency auction day for these banks) next role Training Center Financial and Accounting Ministry of Finance's in training and staff development bank governmental and private with it has received government banks to support the development and training programs by the Ministry of Finance and global financial institutions through programs الايفادات and training abroad next quest to raise capital of these banks and the introduction of technologies by the Ministry of Finance itself.
It is known that the banking sector a pivotal role in the economic development process in countries that rely market economy system, this sector is on attracting a large part of the money compacta and frozen by the public (individuals and companies) in order to enter the economic cycle and contribute to the development process, which is concerned in securing loans necessary, whether short-term or long-term work in the sectors (industrial - agricultural - commercial - service) so as to contribute to the establishment and localization of new investment projects, and then encourage investment urgent task in a scene macroeconomic and contribute to solving the problem of unemployment, all of which preceded or accompanied quest banks in this sector to the development of human resources and training to be eligible for the overall development, while contributing to the introduction and resettlement of modern banking technologies .. And therefore, this sector has the upper hand in the GDP increase.
But reality has produced many facts on this sector over the past years, despite all the means of support, but the workers in the private banking sector specifically were demanding and constantly further support without apply simple steps towards lifting the credit rates and create more confidence between them and the public and between them and the executive branch, next to continuing calls for adjustments in the banking laws and specifically the law of Iraqi banks with number 94 for the year 2004 given that some of its clauses restricting the role of this sector in the processes of reconstruction and investment, according to media-borne.
Recently media quoted a statement from one of the members of the Knesset Finance Committee and specifically at the end of last February in which he said "We are trying to edit government banks, including Rafidain and Rasheed, from the grip of the Ministry of Finance to be having financial independence" .. This statement does not seem clear in meaning because intentionality here carry many assignments .. The lack of clarity caused by the fact that government banks are public companies are running self-financing, and editing of the Ministry of Finance as the sectoral which are connected by means of first glance disengagement by administratively and financially, and this is not possible without legislation several laws determine the fate of these public companies and how to deal with the repercussions of this disengagement.
Statement contained implicitly in the words of Attorney according to a agency, and traded in the media and quickly, under the title "Financial parliamentary begin amending the Banking Act to release it from the central bank" and on this, the Central Bank and apparently restrained is also seeking the Finance Committee in the House of Representatives to destroy him in order to Liberation pan Iraqi banks, as the Ministry of Finance grip applied to diphtheria government banks!.
This is what the reader understands from the text of the news did not carry what is different about this meaning with it refers to initiate the parliamentary Finance Committee for changes to the law of Iraqi banks No. 94 of 2004.
Accordingly, the case relating to the development and amendment of the law banks took another turn his image and the media and the central bank and Ministry of Finance are the ones who stand general role should be aware of its state-owned banks and private banks in the recycling economy, unlike the case which we have him .. Against foot-dragging and slow down in the rate of development and growth in the work of these banks .. Banks government remained under the tutelage of bureaucracy and underdevelopment has not been able to advance in performance because of it and by the consolidation of corruption by the gut-wrenching, which reached the limit fight all the competencies and block the entry of technology openly as they kept private banks like Bdakkakan for buying and selling dollar matured their capital by investing at night., never came close from her credit, but at rates very low, According to estimates the central bank, is still the modus operandi of private banks is limited to the use of five tools banking only remained far from lending containing margin of risk, preferring to resort to investment through deposit with the Central as an investment safe and secure profits to the search for profit through the sale of foreign currency window made of these banks is like be banking بمحال.
The need to amend the law of Iraqi banks were and still demand down in order to clarify some of the terms of this law, which placed the civil governor Paul Bremer regarding relationship central bank with these banks and Aftamha for breastfeeding public funds through monetary policy tools, not unlock banks even turn out to companies commercial, industrial or even agricultural away from its function of withdrawing the money supply and recycling capital in order to raise credit rates to create economic development real, at a time when the duty of the central bank to ensure and support these companies when bankrupt, lest cause collapses financial detrimental to the overall economy.
And therefore you expect from banking institutions have not been able to raise rates credit and is supported by the Central lead developmental role which turn out to companies looking for investment profit across sectors?
What is needed now is to liberate the private banks from the desire of a quick profit at the expense of its functions that set up for them and encourage them to integrate in order to keep up with the actual need for the movement of investment in the country and the liberalization of government banks of bureaucracy and the heirs of culture (writers and your book) in order to invest the money supply enormous coffers of these banks This requires mettle not stop at amending the law and by banks.



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