Experts propose restructuring some banks in line with government banks
Experts propose restructuring some banks in line with government banks
12/19/2024
Financial and banking experts and specialists stressed the need to double efforts aimed at restoring customer confidence in banks, stressing that this step would absorb the accumulated cash mass and increase the volume of deposits, calling at the same time for the restructuring of some private banks, similar to the governmental ones.
Financial advisor Abdul Rahman Al-Shaikhli told Al-Sabah: The Iraqi banking system was suffering from many problems, especially before 2003 due to the lack of private banks, but after 2003, work expanded in establishing many banks, but most of them did not keep pace with international systems and standards, so they suffered from many problems.
Restructuring
Al-Shaikhli added that during the last year and a half, specifically after the imposition of US Federal sanctions on some banks, they all began seeking to restore their status in a manner that is consistent with international standards, stressing the need to restructure some banks so that they are supported by international standards.
Hoarding money
The financial advisor pointed out the need to restore trust between the banking institution and the customer, as it was lost a long time ago, which prompted citizens to hoard their money outside banking channels in order to maintain its disposal at the appropriate time, because some private banks, due to circumstances beyond their control, mismanagement and other matters, have distanced citizens from banks.
Electronic systems
The spokesman pointed out the need to move completely towards automation and the use of modern electronic devices in a manner commensurate with the large size and responsibility undertaken by banking institutions, stressing that recently these banks have begun to change their work towards electronic systems according to the government’s directions.
Sound system
Al-Sheikhly explained that the Prime Minister has recently focused on a very important aspect, which is the restructuring of government banks first, and then private banks, as government banks, especially in Rafidain Bank, have begun and the completion rate of this project has reached 74 to 75 percent, and there is only less than 25 percent left, and it may be completed soon, and thus we will have a wonderful model for a very sound banking system that we can adopt and follow in other banking institutions.
Serious steps
For his part, Mustafa Akram, an expert in financial and banking affairs, said in an interview with Al-Sabah: The government has begun serious steps to rehabilitate and develop the Iraqi banking system, as most banks, especially private ones, suffer from backwardness as a result of monetary policies, indicating that the government has focused on automating the work of banks and introducing an electronic payment system in order to develop the Iraqi banking system.
Digital transformation
It is noteworthy that the Association of Private Banks recently announced an increase in deposits in the banking sector during the past two years, while indicating the government’s great interest in the recent period in relation to digital transformation in general and the shift towards an electronic payment system, and that “during the past two years, deposits in the banking sector have increased, and that about 75 percent of the monetary mass is outside the banking system and requires great effort to motivate citizens, companies and institutions to use the banking system more, which is currently happening, but this type of work needs to be accelerated to control financial operations in Iraq.”
alsabaah.iq
