Difficulties facing pertaining to the acquisition of customers of banks

Difficulties facing pertaining to the acquisition of customers of banks

April 7, 2016

Peace Zidane - night / Baghdad

Facing private banks by 35 banks distributed numbering in all aspects of Iraq, great difficulties in gaining the public who keep their money in the home and resort to relatives and moneylenders to borrow confidence.

CBI confirms that the funds issued by him of 40 trillion dinars, of which 31 trillion dinars outside the banking system and chunky in homes have not benefited, including banks, to develop the economy of the country, who now lives in a difficult financial crisis forced him to external borrowing.

The executive director of the Association of private banks, Ali Tariq's night, said that "about 75% of the money supply exists outside the banking system, mostly chunky houses, putting them at great risk not invested by the citizen and deposited in banks," he said, adding that "there are 11% of the adult citizens they have a bank account which is a very small percentage compared to the global average of 64%. "

He pointed out that "there is a great opportunity for the banking sector to attract these funds especially as the banks began to expand significantly by opening new branches and use of information technology to facilitate the banking transactions."

He explained that "private banks association is working with the Central Bank to educate citizens about banking services and interest them and the importance of savings," noting that "financial education is a magnet for money and we are a financial institution sending reassuring messages to the public about the preservation of their money and use it in an optimal way."

He noted that "many of the statements of politicians and do some of the media by targeting private banks without study and learn influenced the bank's reputation," noting that "private banks association role is the return of confidence to financial institutions by issuing rating for banks illustrates the capital and spread."

For his part, Vice President of the Iraqi Economists Association, on behalf of Jamil Antoine, for the night, said that "some private banks have affected the work of the banking sector because it did not abide by its promises and be part of the development of the country because they worked for personal purposes and made the public lose confidence after declaring bankruptcy, this is due to weak oversight by the central bank. "

He added that "the government departments was not a positive attitude in dealing with private banks as deprived deal with them and this is contrary to the support of the private sector," noting that "the banking business very miserable and even government banks did not perform well and turned their vaults to empty."

Meanwhile, he said a banking expert, Dr. Ali Chihod Sudanese, night's, "The private banks are very bad work and become repulsive for investment, and work is now offices to sell the currency only."

He stressed that "the withdrawal of funds chunky in the homes of citizens needs to be an administrative revolution through the establishment of alliances and partnerships with high efficiency levels, especially in the area of ​​governance, international banks."

He noted that "private banks need to activate its work in the private sector loans because when compared with private banks in Jordan, where granted to small and medium-sized enterprises in the first half of last year's $ 22 billion, while that amount was in Iraq, and the public sector $ 250 million ".

He cautioned that "the lack of confidence of citizens and local investor in the banking system led to the failure of the country's economy, because the economy evolves through the banking sector."