Iraqi banking sector, where and when?

Iraqi banking sector, where and when?

Zia Rahim Mohsen

2016 / 2 / 20

The banking system is formed in Iraq by a group of government and private banks, there Rafidain and Rasheed, who Asthoman more than 80% of banking transactions in Iraq, at the time, we find that the rest of the private and government banks do not acquire only 20% of these transactions, with the number of these banks exceeds 30 banks, including six foreign banks, seven banks deal and according to Islamic law, and quite a few private banks.

the weakness of the banking sector in the two key points, the first State-owned banks dominate the banking, because it lacks modern banking systems, and the second is that most of the banks own, represent receptacles and family lockers, not linked to the country.

banking operations are not confined only in banking operations, can be performed in any small banking office; not to mention the Bank of number of employees with more than thousands, with an estimated depositors' money where tens of trillions of Iraqi dinars, but exceeded this investment operations and the establishment of financial portfolios, could return to depositors additional revenues, but it is unfortunate that the government banks are governed by the instructions of the Central Bank of Iraq, which is preventing them from access to this area, because of the medium and long-term investments, while the depositors' money is considered short-term.

what is taken on the central bank is allowing these banks to grant loans to buy cars, a type of investment is not economic sense for the country, while left out of the development projects needed by the country, which are among his interests, but we do not know when to seize the Central Bank this opportunity to promote the country's economic plight, especially if we know that there is more than $ 40 billion surplus with the bank Rafidain and Rasheed only, and that is possible if they are invested properly, because I got up important economic sectors, but it was possible to do without the import of many local products and goods , which will be a useful vehicle, one hand, it will increase the gross domestic product, as well as restore the soul to sectors of the economy reeling from the impact of imported goods, as well as the return on bank profits and abundant, common to the depositors.

also taken on the banking sector, lack of interaction with the developments in the changes the banking sector in the world, and coping with the developments in, including makes him a primitive sector does not depend on modern mechanization in his work, so that we see that the set-off between the bank branch operation in the province, with another of the same bank in another province lasts more than four days branch, as it is in international banks it does not take from a few minutes.

in one of the reports of the World Bank confirms that the ((Rafidain and Rasheed lacked efficiency in their work, and suffer from losses in previous years, in addition to losses from activities related to government spending policy, and not a private commercial interests and to promote the work of these two banks, the government should strengthen the supervision of the system, and to allow the private sector to compete with state banks.