Iraqi banking environment needed for sophisticated international banks to create a competitive atmosphere and the transfer of expertise and technology

He attributed the number of deputies and specialists in banking reason behind the Iraqi banking sector for Global to legislation old still followed the local banking system. Calling during their talk to the need to encourage international banks to open branches in Iraq to create an atmosphere competitive between local and foreign banks and to benefit from the transfer of expertise and developments in the banking field.

has announced the Association of private banks for the desire of many international banks to enter the Iraqi environment for the purpose of employment and participation in banking transactions in the country. was managing Standard Chartered Bank British announced their intention to open three branches in southern and central Iraq and north, indicating that companies foreign operating therein, especially the British and Korean are looking for financial services “more support” in its there.

said Executive Director of the Association of private banks Abdul Aziz Hassoun: that international banks have cravings to open branches in Iraq or contracting with Iraqi banks to participate in its work and the transfer of technological global banking to it, noting that negotiations are still ongoing with the boards of directors banking, and that the coming period will witness more than an international bank associate with Iraqi bank.

added: that the goal of international banks to operate in Iraq came for the purpose of usefulness primarily through earn profit, but remains on Iraq that exploits the presence of these banks in the training of cadres and the transfer of expertise. pointed to: that the Iraqi banking system consists of (50) banks, manages all things financial and banking in the country, so it does not need foreign banks, adding to say, The international banks come to Iraq to take advantage of some of the facilities granted to them by the laws prevailing in the country for the purpose of work and seeking profits. either Deputy Finance Committee Chairman Ahmed Hassan Faizullah, stressed the importance of encouraging international banks to open branches in the country, to take advantage of expertise possessed by these banks To develop the Iraqi banking sector.

said Faizullah: The banking environment Iraqi desperately needs to enter international banks known to contribute to economic development through financing for investment projects, as well as gaining experience and modern technologies in the banking field. pointed to: that the investment process in the country require the presence of banking system developed to facilitate transactions and to ensure money invested, so must find a developed banking in the country. while a member of the Finance Committee MP Amin Hadi Abbas, said: that Iraq lacks the environment advanced banking technology, which led to a large gap between the work of local and international banks.

said Abbas: The main reason for failure of the Iraqi banking system due to legislation old that do not fit with the banking systems of recent global, they need some amendments into law banks for the year 2004, as well as the lack of joint work between local and international banks in foreign investment. He added: that the central bank demands put mechanisms and conditions necessary local banks update mechanism work in accordance with modern technologies and developments technological new to facilitate Dealings with international banks and attracted to open branches in Iraq to contribute to the promotion of the economic development process in the country. The central bank has put a plan in three phases to raise the banks’ capital to $ 213 million by June 2013 to stimulate lending at a time when Iraq recovers from Chapter VII sanctions. It is noteworthy that Iraq has seven banks owned by the state, and 23 private banks and eight Islamic banks in particular, according to the site’s central bank, while dominated by the banking sector banks Rafidain and Rasheed, and subject currently restructuring in order to pay off the debts accumulated after years of war and sanctions.

Though The Investment Law No. 13 of 2006 has excluded investment in the banking sector of its provisions except that the investment in the banking sector takes its legal framework based on the legal central bank No. 56 of 2004, banks No. 94 of 2004, with a minimum to create a bank in Iraq 100 billion Iraqi dinars (ie, up to $ 85 million.