Classic banking service in Iraq; a stumbling block to foreign investors

Classic banking service in Iraq; a stumbling block to foreign investors



See specialists in the matter of financial lack real competition between government and private banks, noting that the Banking Act current marred a lot of gaps that are reluctant to work banks.

and demanded need new legislation regulating banking business in the country and stir wheel investment.

said President of the Association of private banks Abdul Aziz Hassoun that “There are a lot of gaps in the Banking Act current being written in haste as well as it is a translation of the texts external which still need to amendments and clarifications to some of its articles.

added Goldfinch told (range) that “the current law does not allow banks to the possibility of expanding and providing services It reluctant most of its work, as well as it prevents from being the Iraqi banks the possibility of an executive to pursue debts.

pointed goldfinch to the banking system at the present time to make the Iraqi market is a trading market preoccupied with speculation are not intended to economic activities that take to development and development vision and strategic this itself a problem.

, said head of the Center Economic Media Dergham Mohammed Ali What guided investor in Iraq is the lack of banking service to meet his ambition, noting that the work of banks depends on how old that do not meet ambitious for the investor.

added that “competition in the Currently between government banks and private banks almost non-existent because there variation due to the size of capabilities granted in current law.

revealed Ali in a statement singled out (long) “There is a new draft of the Law on Banks completed government and awaiting approval in the House of Representatives, pointing out that it would give Banks Iraqi larger area, allowing them to operate freely and wide and the granting of credit.

pointed to that proposed law gives private banks space to operate its truly Banks government currently covers up to 90% of bank capital and the remainder of this ratio is just what covered private banks.

“We The stipulated in the Banking Act New he was dealing with investors in a modern way and also help and facilitate the process of integration and working with foreign banks greater freedom, allowing them to applicable law at the present time.

Iraq has suffered from a decline in per capita services banking to reach an average to one bank per 40 thousand people and this is a big difference from what exists in neighboring countries. estimated number of employees in the private banks and government three thousand employees, including people working in circles central bank.

According to the statistics published by the Ministry of Finance on its website recently there 25 banks waged and five state banks operating in the country. Among the most prominent of those banks five Mesopotamia, which has 190 branches in all the provinces and abroad, except Kurdistan region, in addition to the Rasheed Bank, which has 150 branches in the inside and outside Iraq, except Kurdistan region, along with banks real estate, agricultural and industrial.

rises claims of the Council of Representatives of Iraq between now and then amending the Iraqi banks for the lack of clarity some articles especially Article 28, which states “no bank from the private sector to exercise or participate as an agent or partner or owner, trade wholesale or singular or manufacturing processes or transfer, agriculture or fisheries, mining or building or re-insurance, or any activity or other work unauthorized. “