Economists: marginalization and under-law made obstacles stagnant private banks

On: Sun 03/25/2012 11:31

Baghdad (news) / report / Qusay Adhami / .. Since the inception of private banks in Iraq, through trying to make it an important element of the national economy and investment, leading to the establishment of more than thirty banks of them, notes involved in the economic survival of stagnant and limited possibilities. it is still small due to limited capital, which led to the reluctance of some and aversion to government institutions, including, as indicated.. in most views of specialists in the matter of financial who spoke (of the Agency news) in this regard. 
commented Director of Bank of the Middle East Investment Farooq Hamid Zainal Abidin said that some government departments have a reaction of some private banks in the previous period because of some drawbacks which marred. 
explained Zine El Abidine (of the Agency news): that the existence of some private banks lagging does not mean the absence of banks, civil large has a large capital and have the ability to economic development, and its classification advanced in the Central Bank. 
The Administrator proposes the Association of Iraqi banks appearance Halawi on the government not to boycott the private banks because of bank or two may tarry in their performance, and can negotiate with them and demand guarantees, if necessary. 
said Halawi (of the Agency news): Some banks have evolved and become able to participate in the process of economic development, pointing to the existence attempts by the Ministry of Finance to restore confidence to banks. 
and Acharmzar Halawi to: The Banking Act of 2004 needs to be reconsidered in full there is a lot of variables that have occurred in Iraq and in the work of private banks, explaining that the amendment of Article (28), which was to prevent private banks from participate or engage in large projects did not meet the ambitious and that the amendment was simple and does not open the doors of the work. 
and Article (28) of the Banking Act (it is not permissible for any bank to exercise or participate as an agent, partner, or owner of the trade, wholesale or single or manufacturing processes or transfer or agriculture or fisheries, or mining or building or re-insurance or any other work activity or unauthorized) At a time when private banks suffer from marginalization by the Iraqi government due to lack of participation in the financing of strategic projects or investment projects, Investment Authority revealed National for an ambitious plan to post the Iraqi banks and support in certain industrial projects. The head of the National Investment Authority Sami al-Araji (of the Agency news): The National Commission for Investment has offered to private banks, some of the proposals for cooperation especially in some industrial fields, small and medium enterprises, noting that the banking system work in a difficult environment and needs for support and added that the National Authority will cooperate with private banks to invest in some promising projects in Iraq and will work on creating cooperation between banks, the Iraqi civil and international banks wishing to enter Iraq and invest in it. and the National Investment Authority has offered (16) economic sector Investment at various companies and foreign businessmen who came to Iraq in 2011, have included the investment opportunities of different sectors such as oil, electricity, housing, industry, tourism and others. There is another obstacle in the way of private banks, is in the Banking Law No. (94) for the year 2004 because some of its articles is clear and cause a lot of confusion. seems to be called for reconsideration of the Banking Act and found in favor of the Central Bank, where he said the deputy governor of Central Bank of Iraq the appearance of Mohammed Saleh (agency news): The law of banks advanced as authorized to open branches of banks in partnership with banks, countries the world, but he put in a hurry and it is time to amend it in line with the development of economy and development in Iraq. added benefit is that the Banking Act only mode of investment banks, usury did not affect Islamic banks which are based on profit-sharing, despite the existence of a draft special law to regulate the work of Islamic banks. The number of Islamic banks from one bank in 2003 to ten banks so far, including the Iraqi Islamic Bank and the country’s Islamic, and Elaph Islamic, Kurdistan and the Tigris and Euphrates and Altaaonalakulaima.For her part, General Manager of Bank of Iraqi Trade Hamdiya dry (of the Agency news): The Bank seeks to find companies between government and private banks to support economic development in Iraq, noting that Bank of Iraq Commercial intended to form an investment fund to finance projects. explained Dry: that private banks need to enhance the confidence of the street and the public sector by, indicating that an increase in bank capital not the only factor in the development or increase their confidence, but credibility in the implementation and practice of banking. The Central Bank of Iraq confirmed, that the foreign banks operating in Iraq do not work independently, but under the umbrella of the banks, local community, indicating that the investments of the regional countries in Iraq with a commercial character and lacking in international standards. / Finished / 3. d.