Baghdad calls for foreign banks to raise capital

Baghdad calls for foreign banks to raise capital

Publication Date 09/11/2014 10:23 AM

Baghdad calls for foreign banks to raise capitalIraqi Central Bank decided to raise the foreign bank branches operating in Iraq of $ 7 million is currently the capital to 70 million per branch, the equivalent of 30 percent of the capital of Iraqi banks. Considered among the Lebanese banking active in Iraq in remarks to «life», that this step will increase the activity of foreign banks in the Iraqi market, raising the intensity of competition between them and the Iraqi banks, which must provide banking services and products to a wider citizens.

The CBI was granted leave under No. 94 of the 2004 law for more than 18 branches of foreign banks, including 8 of Lebanese banks and 5 banks Turkish and banks Iranians, in addition to the branch «Abu Dhabi Islamic Bank» and another for «Standard Chartered Bank» and for «Citibank »British, in the context of opening up the banking sector to foreign policy and encouraged him to open branches in Iraq, or to participate in the Iraqi capital of banks, as this has a positive impact on the national economy and the financial sector.

It welcomed the Lebanese banks which have branches in Iraq to «step taken by the Central Bank of Iraq, which, considered it« reflect the reality of the banking industry in Iraq and prospects, prompting Lebanese banks to increase their interest in contributing to the development of credit activity and investment in the Iraqi market to achieve the desired development goals ». And stressed the need to take care of any step promote economic growth and banking relations between Iraq and Lebanon opportunities. » She pointed to the conference group and joint workshops held in this regard previously, in conjunction with the two banks of the Lebanese and Iraqi central, and the contribution of the Lebanese and Iraqi banks, as it has increased to a large extent of communication between the monetary and supervisory authorities in the two countries, with the possibility to benefit from Lebanon’s experience in the banking sector ».

He quoted one of the branches of the Lebanese banking official in Baghdad as saying that the Iraqi market «has become an attractive element of foreign banks, in the forefront of Lebanese banks, which occupies a large area of ​​activity of the Arab banking sector, what gave her the ability to attract investors and depositors». He stressed the keenness of Lebanese banks in Iraq to contribute to the expansion of the size of these banks benefit from the experience in the field of banking activity, which has become a rich culture of modern technology and the commitment of the international standards in performance. »

The claim was repeated Finally, the need to reassure foreign investors and the owners of the banks to stay in Iraq and continue their work, despite the difficult security conditions that prevailed in the Iraqi market.

The deputy governor of the former Iraqi Central Bank the appearance of Mohammed Saleh, said that earlier this year saw «contention large number of Arab and foreign banks to enter the Iraqi market because of their promising features, but Mosul events since June (last June) left a clear imprint on the Iraqi economy sector ». He explained that the most prominent legibility was «is in the process of the withdrawal of some foreign banks to provinces such as Erbil and Sulaymaniyah, without being so mean divest completely, arguing that a tactical change, because the Iraqi market and promising».

Saleh pointed out that the financial sector companies and banks «fast movement is known as» because «affected by any security or political turmoil, so maneuvering these companies in a variety of directions without massive financial losses».

He said the Director of the Iraqi private banks Association super Nasser Hussain, the capital of branches of foreign banks in Iraq, amounting to $ 7 million «can be described Balchgala because these branches follow the main parent banks that increase their financial positions on some billion dollars». He also pointed out that «the capital of branches of foreign banks increased to $ 70 million, or about 85 billion dinars, will double its credit ceiling, and thus increase the level of competition between them and the Iraqi banks that they must provide better services to citizens»