Foreign banks considering investing in the banking sector
Foreign banks considering investing in the banking sector
07/29/2013 12:00 AM
Expert: entry establishes a competitive environment with the local
Baghdad – Mostafa Hashemi
banking expert stressed that Iraq represents a promising financial market attracts the attention of investors and international banks to come to the country and direct banking investments where especially given that citizens are now looking to banking services is greater than currently exist. Afterthought at the same time, but he and on the ground, there are intersections between the need for Iraq to enter the investment banks are universal, among the problems faced by the banking sector and of the absence of awareness and banking culture among the citizens, in addition to the weakness of experience in banking transactions in a cadre of local banks and specifically governmental organizations. Services integrated and director banks in the ministry Hilal Taan told (morning): despite the existence of evolution is slow in the banking sector, the banking Full will become required in the case of entry of foreign banks, adding that there are limited opportunities for citizens currently in obtaining loans and credit and mortgages and other services, while investment banks will grant loans on favorable terms to attract public offers distinct opposite of what works by local banks when they enter the country. competitive environment and pointed out that the entry of foreign banks into Iraq would have a competitive environment between them and the local banks operating in the arena Banking, explaining that it will reflect on the nature of the services and facilities provided by the citizens as well as the conditions diluted guarantees that Sttalbha those banks on loans and credits. pointing out that some of those who have bank accounts, are unable to use ATMs or services the bank online or even the ability to access their accounts from different branches of the bank itself. culture of banking and said he could be working systems of banking with modern techniques after the provision of a suitable ground for this by raising awareness and banking culture and modernization visions of citizens and encourage them to use the most advanced technology in withdrawals and deposits and money transfer. pointed Taan that the evolution of the banking business depends on also the evolution of banking culture for citizens and the extent of acceptance to deal with cash-mail through the use of smart cards different and available in the country. sophisticated systems , according to the Central Bank, Iraq has one of the most payment systems, electronic advanced in the world, a system responsible for the exchange of orders Payment interbank automatically using a network safe and effective. confirms the CBI keen to reduce the use of cash (CASH) in the country, and go to automate the processes of settlement of checks and salaries and activate the automated systems of the card electronic, to keep more cash in bank accounts. And seeking to bolster confidence in the economy through the creation of a safe and sound banking system and competitive available to all. restructuring of banks For his part, banking expert Majid picture that the restructuring of the banks are issuing instructions and regulations that explain the law and in accordance with the recommendations of the Basel I and II in 2011, which did not apply until now fully all indicators This requires the preparation of the budget and in accordance with the Basel standards and international standards. He said in a statement to the (morning) that for the Rafidain and Rasheed was prepared all of the studies and recommendations have been trained 700 employees from both banks and the Central Bank in addition to preparing recommendations for the organizational structure and operational aspects and financial aspects. Stressed that the reason for the partial implementation of the recommendations and its failure to implement entirely due to the absence of the real will the change being difficult and not easy, explaining that the restructuring means the separation of capital for the administration of any sense that the managing director of the bank (for private banks) is responsible for the disposition money while the Director-General or the President of the Board of Directors (in government banks) must be responsible for issuing administrative orders and plans to invest the money without having the authority to act directly and leaving it to the governing body for banks-governmental organizations. global standards and drew figurehead that the banking business in Iraq does not match the criteria global banking in other countries due to the adoption of electronic systems in modern banks governmental and confined to a number of private banks generates a gap in the work and coordination between both of them be killed is a citizen. And the figurehead that international banks operating standards and specifications agreed international while we find our banks are looking to the government to recruit money, and predicted that he would not be for the banks a clear role and moving without the development of the private sector, pointing out that the banks two branches of public and private still without ambition is not seen any development in the principles of their work, noting that the private banks are unable to identify their goals because they rely on government money. factor of stability and demonstrate international banks, the desire to find a foothold in Iraq, but that this desire is often hampered by a factor of general stability. According to reports, it has become Iraq represents an ambitious target of banking institutions, but the old laws, and weak infrastructure for the sector, make banking activity in the country is a big risk. However, it is very likely that Iraq will be a market rich in relation to the banking business. Says مايانك owner, bank manager «Citibank» in Jordan and Iraq, in a press statement: We look at Iraq as larger goal next as we see in Iraq giant is preparing for advancement.