The tutelage of the central bank to raise private banks angry reactions to economists
The tutelage of the central bank to raise private banks angry reactions to economists
06/08/2014 (00:01 pm)
Zahraa Hamid
The announcement of the Iraqi Central Bank to impose trusteeship Economy Bank for Finance and Investment angry reactions to economic experts, in time some criticized the absence of a law regulating the work of banks in Iraq, others questioned the fate of letters of guarantee and credits issued by this bank.? As others point out that this procedure will make the citizen’s confidence and investor weak banking system, the Iraqi general, which will make the private sector completely paralyzed.
put the Iraqi Central Bank, on Wednesday 06/04/2014, Economy Bank for Investment under guardianship, while pointing to his commitment to the advancement of bank and protect its customers.
sees economic expert Hassan al-Asadi, the problem is that we in Iraq do not have a law regulating the work of banks, whether governmental or private sector, banks are civil works now without the law, so that the central bank does not allow for investment, including investment and the great irony.
says Asadi said in an interview (range), that this mess has led to the disruption in the banking business, which is the most important reasons that led to the paralysis of the year in the private sector, which produced a negative decline in the economy, day after day.
adds, that this mess is natural that produces reported a drop in a bank or a rise in other banks abnormally, it can close the central bank some banks and put his hand on them, because they can be exceeded in its allowable limit her by giving letters of guarantee and traded loans exceeded the allowable limits her is odd.
shows, but peek, the central bank until the laws laid down to regulate the work of private banks senses observer that imposes restrictions curb these banks of movement and this is definitely a negative impacted heavily on the work of banks.
calls al-Asadi, the central bank to go to organize all of these things, including his work is, being transformed from a central bank is responsible for monetary policy in the country, to a mere field for the sale of foreign currency Ohz itself a big problem, which is why all the chaos in Iraq, the economic aspect.
For its part, suggests an economic expert safety Sumaisem, that this procedure will lead to a decline in prices of shares of Bank of the economy market securities, which will make the position of the public affected towards the private banks and the turnout it and deal with it.
adds in an interview (range), we must wonder what is the fate of letters of guarantee and credits, which is issued by the bank, and can bear the Central Bank consequences complete especially that the bank is suffering from financial problems since for quite some time.
She Sumaisem, here I must mention that the lack of a law and a realistic private banks to help more of this mess, but the rule of uncertainty in understanding and performance of private banks.
says economic expert on behalf Antoine, The investment activity until the rebound to be the existence of a banking system Thoroughbred and the Iraqi government and the central bank to strengthen this activity and support and any actions improperly taken against banks may be signals to the investor weak investment environment.
believes in an interview (range) that required the central bank to reconsider some decisions and supports private banks, to address and put it in a transparent manner, he may put custody or control, but this does not serve the economic process in general.
stresses Antoine, the need to be given additional time to these banks, especially those with returns such as real estate and others, including that there was no wrongdoing essential to her, it is not true that the succession in this way.
, and refers to, that these measures make the citizen’s confidence and investor weak banking system in general, at a time when we are moving the market economy on the basis of the existence of banks, private sector, civil and enhance their role and support.
believes, since these banks opened in public holidays and law firms by the central bank, of the mistake made the right of these banks is to prevent the state departments of dealing with them or accept their instruments, or bid farewell exaggerated, and this was a big bump in the way of the work of these banks.
and continues wondering, why treats bank government privileges large reverse National Bank while working as the last great transparency and speed in work and achievement and great efficiency, but he also yes if the remaining control was not bad but may not be treated in this way with the private banks.
According to the central bank, it was based on conducted this to the Banking Act No. 94 of 2004 in Article 40 that authority to supervise and control the banks operating in Iraq, the text of paragraph 1 of Article 59, which refers to appoint the CBI guardian of the bank when the central bank decided that the bank does not meet its financial obligations when entitlements.
, and the majority of private banks in Iraq Earlier governed by the Banking Act of Iraq, indicating that allows banks to the government monopoly of the banking business, especially after the release of the new guidelines, which called for private banks to raise their capital to 250 billion Iraqi dinars, at least by 2013, and Fimaoharoaaly that this decision makes the private banking sector sub- paralyzed and unconscious of its flexibility.
no longer put custody of the Bank of the economy to invest the first of its kind, has canceled the elimination of the highest in the 12 – March -2013, and the tutelage of the Central Bank of the Warka Bank, after the board decided the central bank put tutelage on 29 – 2 – 2012.
The Bank was established to invest in the economy 22.03.1999, as has been included in the stock market on 02/01/2005, and the bank has 50 branches located in different provinces of Iraq with a capital of one hundred and fifty billion Iraqi dinars.
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