Iraqi banks .. Reality and Ambition - articles - Tariq Kanani

Iraqi banks .. Reality and Ambition - articles - Tariq Kanani

6/27/2016

A few days ago called me a friend of my childhood ask me about some banking matters affecting them and believes that the guarantee of the future after he retired from his job for the service exceeded forty years and he does not know what to do about it, he asked timidly for my opinion on that sends money to Iran to invest there and deposited in Iranian banks to get the benefit of more than 10% rate? This question by the many friends who have understood through an interview with the friend has been repeated that people began to flee their money to neighboring Iran in order to be deposited in the Iranian government banks to get the high interest rate and even Iranian private banks granted the same proportions and talk about investing there makes me fascinated by the large number of incentives existing attractions and guarantees granted to the customer to keep his money, and in fact I do not know what are the guarantees that have been deposited by persuading the Iraqi, but I find them talking about these deposits and the confidence is high, I have asked the friend my opinion on this topic.

I told him that you care about my opinion, I put this work under high treason, it means economic sabotage where you will smuggle money to a foreign destination to be invested by the banks that State on sustainable activities in the open factories and institutions produced, which in turn will export its goods to Iraq and pricing currency difficult and will you receive a fraction of those profits and therefore the industrial Iraqi can not compete with those backed by its contained such goods will be you and people like you from the idiots in the destruction of the Iraqi economy contributed, he said to me that the government allow this, yes, if the government allows this because it is a government belonging to the neighboring countries, not national, and you ask me for my opinion on this subject and I told you Matalmth and studied and wrote my thesis about him.

A simple look to the reality of the Iraqi banking tells us about the extent of the failure of this vital sector in Iraq, we have not seen any serious step by the government to the development of the government sector or monitor private banks activities is a real guarantee the rights of depositors first and the smooth flow of finance and investment for sustainable activities in the country and falling among the priorities of those banks , the Central Bank is completely absent from this civil shops, which have had a negative and influential role in the Iraqi foreign currency smuggling and then she has captured the Iraqi treasure or the so-called general reserve of the Central Bank of Iraq, which is the cover of the Iraqi currency which maintains its value to collapse, as happened in the nineties ...

Private banks in Iraq have resulted in a negative role seriously in the failure of the Iraqi economy, rather than to be a contributing factor in the construction and development of industrial, agricultural and commercial sectors, not to mention its inability to meet its obligations towards the government and other sectors, has made these banks, and during the last period on bail the contractors of the class tenth in amounts of up to billions of dollars for the purpose of a good performance in completing the contract were not letters of guarantee issued by those banks that depend on the solvency of the contractor and Rsanth did not bail process is subject to the terms of the Basel Committee without CBI moves Department oversight of banking and credit finger, they are not interested in this serious and that led to the suspension of many development projects in the country due to meet Iraqi contractor and foreign obligations excesses of these banks have not fulfilled their obligations to the state ....

There are several factors contributed to the smuggling of Iraqi capital to neighboring countries:

These both governmental and private banks do not represent a magnet for Iraqi deposits made where the interest rate is very low depositor money to flee the Iraqi neighboring countries either in Jordan or in Iran or any other country for high profits.

Keep these funds from the threat of bankruptcy faced by private banks between now and then where are these banks depositors speculative money in the stock market in neighboring countries without being deterred by the CBI.

The lack of liquidity that confuse the Iraqi trader work in daily trading with clients, where National Bank stops to fulfilling its obligations to its customers in the cash withdrawals.

Private banks did not contribute to encourage the Iraqi investor and the granting of industrial, agricultural and commercial loans these banks did not represent banking activities to a minimum only in the foreign exchange operations.

These banks did not provide ideas for industrial and Iraqi merchant did not contribute to the development of various marketing activities and market ideas can serve the economic process.

Suitable atmosphere

While intended for banking system advancement must be appropriate atmosphere available for her to work Banks like State, it needs to offshore banking relations and correspondent banks all over the world to be able to cover other trade and economic activities, the merchant needs such relationships in multiple activities, as well as industrial and agricultural activity process import and export economic activity needs of the country, and a country like Iraq, is located in this vital part of the world can be a global business center and plays an important role in commercial mediation between East and West if he had the integrated banking system ... and so was the Iraqi trader.

Let's go back a little bit back before the year 1991 before the blockade that has been imposed on Iraq was Iraq possesses banking system effective all over the world and can the Iraqi trader to export and import with all countries of the world, without exception, without feeling the difficulty of foreign exchange Iraqi banks, whether direct banks and indirect have the ability to open the letter of credit issued for any dealer located his business within the needs of the country's economic condition except prohibited goods, and must enter his wares in the development of the Iraqi economy, this national objective endures banking, the banking system at the time was considered the first in the region and flows into all regional states with expertise and departments successful what these items are available upon cumulative experience and the ability to conduct the business of the bank as well as a sense of responsibility and national high which was the main motive to build this exact banking system. After 1991, the Iraqi banking system was signed under penalty of the economic embargo The Americans directed knockdown of the Iraqi economy while they cut the long tentacles stretching around the world and one decision, a freezing of Iraqi assets and subject them under Chapter VII and here occurred the disaster and began the process of decline performance offshore banking and restrict myself to the work of banks in the Iraqi arena only. Foreign banking relationships have completely stopped except indebtedness restrictions that have been shown in bank accounts, which constitute another burden on the Iraqi banks, which banks stopped correspondence to repay its obligations to Daaneha Although there are balances due to the surprise decision to freeze issued by the international Organization on Iraq's external balances .. this blockade has continued on balances of more than a decade has caused much damage to Iraqi banks .mnha technical damage to Iraqi banks has thrown a lot of expertise, namely: -

1. have affected operations of the US indiscriminate bombing joints vital Iraqi banks and then do Alchgb- operations that have taken place in after-burning of all Iraqi banks and damage to appliances and computers that they contain all the vital files and balances and all other activities and then the return of the banking business to work hand for not these devices provide.

2. Long time has passed without the exercise of Iraqi banks for foreign exchange operations and bank credits to the lack of network correspondents abroad and this is what Iraqi banks lose these experiences that have been referred to the staff of the departments of the retirement age of legal age.

3. development of the banking business in the world through communication networks and modern technology is different from the one that was used by the Iraqi banking in the eighties did not make it to Iraq because of the blockade.

4. Iraq is mainly dependent on the Iraqi government banks without the development of the banking sector and civil without allowing entry of foreign banks to take advantage of their expertise and the development of the banking sector and take advantage of offshore banking relationships, making the banking system is suffering from an unprecedented recession. This stop coping with the development that has occurred in the world lose a lot of the Iraqi banking sector.

I have kept Iraq on advanced banking elites in the upper departments throughout the siege period, which was able to turn to provide all Maldiha the expertise to ease the burden on the merchant and industrial and agricultural Iraqi and extended its services even further through the granting of various loans to citizens has worked with what exists of the powers delegated to the government and the the rest remains subject to political decision under Prone himself did not try to crack the cocoon of the blockade through the development of banking relationships with the private sector and link it to other Arab and foreign banks who will provide a great outlet for Iraq to restore the banking activity and routinely in addition to access to modern technology,

After the US occupation of Iraq banker realized veteran (Ahmad Alچlba) this situation arose, to contribute to the establishment (TBI), a purely government bank, but it is protected by US banks group and founded the bank in accordance with the systems of modern banking and methods that did not make it to Iraq before but does this bank open port for Iraq offshore banking transactions and the implementation of all foreign exchange transactions and documentary credits for the state sector Acial.olkn problem persisted through the selection of the Director of the bank at the same level and national spirit that drawer by government banks managers and here I do not mean bureaucracy abhorrent, but I mean the interest in the type of economic activities financed by the Bank or contribute by bringing to Iraq through the opening of these credits, but the bank be higher profitability factor without considering the quality of the activities carried out by individuals and this has contributed to a significant decline of the Iraqi economy and a large smuggling of foreign currency through the government port authoritarian political decision, and private banks follow the same fiscal policy in terms of opening letters of credit and fake deals or shoddy goods that have contributed to disrupt the domestic industry and the elimination of all sustainable activities that existed in the country, and instead developed has become the major cause of elimination, the other thing these banks contributed to (civil) as we have said In an article earlier the first episode of smuggling Iraqi capital abroad and speculation in stock markets, which presented for bankruptcy and the loss of all Iraqi depositor deposits without any attention from the Iraqi Central Bank, which is the responsibility of oversight of these institutions within the terms of reference.

Consistent performance

State-owned banks remained both commercial and other specialist maintain the pace of the performance of a fixed capacity of the upper departments that remained the unchanged where behind the high-Obeidi, Professor Abdul Hadi, a veteran banker and then his successor, Mr. Fouad agent who maintained the integrity of this institution and the strength of its performance and its impact on the Iraqi customer and durability confidence in them, and he left the office began a new phase was caused by senior management, which have been selected according to party quotas thus becoming these institutions and here I mean (Mesopotamia, rational, industrial, agricultural, real estate).

These managers have set up according to their loyalties and lots of their parties Iraqi Valmsrv trade became Kurds share the Central Bank of the share of advocacy and good governance of the share of the Union of Forces and Mesopotamia also to call, and so the rest of the government banks, was chosen as the managers are in line with the aspirations of those parties away from the professional than the banking performance display a major setback than those suffered by the Aban siege, they became the demolition of the Iraqi economy factor, those banks no longer dependent national standards in the import and export and the granting of credit and the development of economic activities, Valsafqat become held in Beirut, instead of correspondents global network of banks cover the development, has become Lebanese banks are The foreign operations of Iraqi banks, rather than the development of the industrial sector, the bank became a contract with failed companies to import cars do not carry international specifications and conditions of the countries can not manufacture are subject to quality control and in spite of constant alert us to one of the managers of these banks from the consequences of importing so wheels because it would be bad for the Iraqi economy, but he went on his sick Iraqi market and flooded these cars that shelf-life ends before the payment of installments by the buyer, of course, this was in accordance with the foreign agenda is came to implementation. Has become the Iraqi government banks and civil banks pose a real threat to the Iraqi economy because of these quotas are granted loans worth billions of dealers outside their areas because of their upper joints of the state for example, the Kurdish merchant his preference in all banks where the granting of loans billions The guarantees real fake or have been evaluated outside the controls and therefore they have over-evaluated or without documentation and under the direct orders of the competent minister. This helped to acute shortage of liquidity in the center and south of Baghdad and western regions and threatened directly and public deposits This is happening in front of the glare of the Central Bank of Iraq and review simple in the credit departments records in banks, Rafidain and Rasheed, and the Iraqi trade will find the sheer volume of loans granted to the Kurdistan region without real guarantees , not to mention the fact that this region where there are no branches functioning of these banks, those traders are borrowing from banks Baghdad and other provinces outside of work contexts that require commitment geographical Balrqah to work and the presence of the merchant and because such loans are not significant the financial efficiency of the dealer only, but offers a reputable literary financial efficiency, including that this trader is unknown for the bank lender would be very difficult for the managers of these banks draw a true picture of this trader and therefore this would be a loan within the non-performing loans and will thus undesirable results have been received like this in the trade Bank of Iraq previously and will be repeated even more, but this time in all the banks.