Economist: Direct banking investment is prohibited by order of the Central Bank
Economist: Direct banking investment is prohibited by order of the Central Bank
2024-06-30 03:32
Shafaq News/ Economic expert Mustafa Akram Hantoush explained on Sunday that the Central Bank of Iraq adopts a “strict” central policy in its dealings with the banking sector, which limits the ability of banks to engage in direct investment and finance economic projects.
Hantoush told Shafaq News Agency that this policy makes it difficult for the banking system and investors to invest their capital in new projects without obtaining special approvals from the Central Bank.
Hantoush added that the current procedures followed by the Central Bank prevent banks from entering the fields of direct investment, which hinders the realization of a vital role for the banking sector in moving the wheel of the national economy.
He explained that the banking system, in light of these procedures, does not have sufficient capacity to play an effective investment role in line with normal banking rules, but rather the investment decision becomes subject to the directions and approvals of the Central Bank.
Hantoush stressed that this approach lacks the concept of “financial liberation” for banks, which would allow the banking sector the opportunity to enter the Iraqi market directly and support investment opportunities, while adhering to banking and legal controls.
He stressed that reviewing these policies may be a necessary step to activate the role of banks in supporting economic projects and promoting investment in Iraq.
shafaq.com
