Adoption of a new version of article (28) of the Banking Act

The Executive Director of the Association of private banks in Iraq Abdul Aziz Hassoun, the adoption of a new version of article 28 of the law on banks by the Central Bank in cooperation with the Association of private banks to facilitate understanding and to overcome the difficulties in investing in banks.

Hassoun said: the Banking Act of the year (2004) is a foreign text issued at a time when us civil administrator Paul Bremer, translation failed to explain certain articles clearly so that it did not give the true meaning.

He noted: that article 28 of the law has been interpreted incorrectly i.e. they prohibit investment banks and partnerships among banks in many activities and will not be given a role for Islamic banks, indicating that the formation of a Joint Committee between the Central Bank and private banks Association to consider the provisions of this article and how to apply, a new version was adopted more visible to overcome obstacles to investment banks.

The Banking Act of 2004 includes article 28 under which Central Bank allows banks to direct investment.

Iraq is seeking to develop the banking system strengthening human capabilities further energies and expertise that can be gained through participation in courses on the development of banking and financial realities in Iraq, came to the capital markets, which is the primary player banks that account for 65 percent of the daily volume, especially the volume on buying stocks and bonds for those banks also increased exponentially during the past years due to the breadth of their work.