The exclusion of 12 banks waged daily currency auction
The exclusion of 12 banks waged daily currency auction
10/24/2013 12:00 AM
Experts warned of the acquisition banking companies by
Baghdad – Mostafa Hashemi – شكران Fatlawi
varied views of specialists in economic affairs around the central bank’s decision excluding 12 out of 32 banks waged from the auction currency for not achieving increased their capital to 250 billion Iraqi dinars within the period set by the Bank For those banks, regarding an economist believes that this decision will impact on the reputation of banks, both domestic and external. He noted educator economic that this measure will open the door more widely to brokerage firms in competition banks civil auction currency while reducing another expert from the importance of this by saying that it will provide an opportunity for banks civil undisciplined expand its participation in the auction buying and selling currency. impact on the stock exchange in this regard sees economic expert on behalf of Jamil Antoine, the effects of this decision will be reflected on the street a message that private banks are not yet eligible to take their role in the development process, as well as that this step ستربك the banking business. He described in a statement to the (morning) to hold the central bank as a semi-penalty against them also that this measure will generate uncertainty in the foreign investor and the citizen as well as other influences on the stock exchange and the process of withdrawal of depositors and undermine confidence in the banks. capital and pointed out that the impact of this measure on the level the outside will have a negative impact as the number of these banks negotiating with foreign banks to enter the banking with them in partnership, calling for the central bank not to alienate these banks and give them another chance to study the possibility of the integration of some or while achieving partnership with foreign banks to enter Iraq. For his part, said economic expert that the increase in commercial banks to their capital to 250 billion Iraqi dinars not enough to hold economic reform unless it addressed the paragraph 27 of the Banking Act. restrictions banking , said Dr. Akram Hassan’s “morning” that Article 28 of the Banking Act restricted the banks in the exercise of activities that is at the heart of its work and investment-related as well as prevent them from doing any activity that is not mentioned in Article 27 only after taking approval from the Central Bank, which prohibits banks exercise any activity not mentioned in this article to make banks restricted in the exercise of a particular aspect of the banking business and lack of exercise side II. pointed out that the economic reform process starting from banking reform as a key lever that goes by the economy required to lift the restrictions that limit movement, referring to the experiences of Eastern European countries in this field. He pointed out that the banking and financial sector, one of the most important factors of the transition from a centralized economy to a market economy. To that supported academic Economist Dr. Essam المحاويلي a central bank Excluding this number from the banks of the auction currency and describing it as that hold true. said in a statement (morning) that the capital of banks, represents the largest protection of deposits, indicating that the inability of some banks The increase in capital within the period specified places in front of the option to merge with other banks or shift to corporate banking, according to central bank’s decision. , and pointed out that the period granted by the Central Bank for banks to increase its capital to 250 billion dinars is long enough being made on several stages and began about 3 years, pointing out that the more capital the bank whenever allowed him the opportunity to develop his work and took a role in the development process. consists of the banking system in Iraq of 7 state banks are Rafidain and Rasheed and Trade Bank of Iraq and the Agricultural Bank and the Industrial and real estate in addition to the Bank of Mesopotamia the Islamic opened this year, along with 32 banks waged locally and 11 branches of foreign banks, including Lebanese and United Arab Emirates, Iranian and Turkish. added المحاويلي that the implications of this decision will not be reflected on the street where there are a number of other private banks can be resolved in the auction currency instead of banks excluded and doing what they were doing from purchases and sales, indicating that the currency exchange rate will not be affected by this measure to the presence of more than 30 banks waged scattered branches in Baghdad and the provinces. competition is fair and added that this measure would also open the door to banking companies and financial transfers to enter into Auction sell the currency, which generates competition may be unfair between them and the banks participating in the auction the fact that these companies are unknown does not have the experience and reputation that qualifies them to engage in this الغمار. control the movement of money into it, said director of banks in the Ministry of Finance Dr. Hilal Taan that bank’s target of exclusion came for the purpose of inventory selling and trading of foreign currency banks are limited to control the movement of money and eliminate the black market traders. said in a statement to the (morning) that this action will not affect significantly in the currency exchange rate, because there are large reserves in the Central Bank amounted to 80 billion dollars and more than 30 tons of gold and therefore, the Bank succeeded in controlling and maintaining the low exchange rate compared to the previous periods. , and pointed out that the brokerage firms will take advantage of the void that happened in the auction currency of the exclusion of certain banks because the central bank is able to control levels of the currency market. Pointing out that the price difference, which may get up tiger or Nmrtin will not affect the movement of the market because it is a matter of course in a country like Iraq passed through difficult circumstances over the last three decades. , and stressed that the bank’s decision was issued based on a study of experts and specialists have a long tradition in the auction currency, calling for banks disposed to reconsider their betterment and strive to increase its capital and the duties of monetary policy to achieve that increase was imposed on those banks that take advantage of the time to increase the amount of their capital. ‘s central bank has decided to exclude 12 banks waged from entering the auction currency (cash sales and credits and transfers) for the failure of those banks to increase their capital to 250 billion dinars. excluded also prevent banks from opening branches or any expansion of the banks want to do to while completing increase, as well as امهالها 4 months to complete the procedures to increase.