Iraqi Dinar Discussion Board

[Panhead]

Iraqi private banks between the expectations of bankruptcy and development requirements



2010-04-04 10:59:46


BAGHDAD (Iba) / report / .. Comments sparked Undersecretary of the Ministry of Finance and expectations of the Fadel Prophet bankruptcy of a number of private banks, questions about the role of these banks in the Iraqi economy in the light of the reality of work now.
Businessmen have expressed resentment at the way they handle these banks with regard to loans, noting that they are the banks most have is to get the amounts of interest earned from loans, at a time procrastinating in the process of handing the funds deposited with it when the clouds, under various pretexts.
The Ministry of Finance for its part decided to put more stringent controls on banks because they were not its anticipated role in the economic movement in Iraq.
He said Undersecretary Fadel prophet to "the opening of a large number of private banks in a relatively short time, but you can not play its supposed to which led to the occurrence of some of the problems," expected, "the bankruptcy of a number of them."
He said the Prophet that "the Iraqi government and the Ministry of Finance and economists, the Iraqis agreed on the need to put more conditions placed on the banks operating as well as the procedures for the establishment of private banks in the future," adding that "The ministry decided to help these banks to play a role in economic activity and reconstruction in Iraq, and promised aid significantly in the future, but since it failed to perform its role, the ministry was forced to reverse the decision to help her. "
Owners of private banks for their part expressed their criticism of the Prophet's statements Fadel and called for a meeting to discuss the potential implications of these statements.
The head of the Association of Iraqi private banks Fouad al-Hassani told a news briefing, that the statements of the Prophet ignored the size of the investment made by banks generously to modernize their development and use of advanced communications in their work to complete the transactions banking, in addition to the activity of large-volume transactions, offshore banking and increase its branches in the governorates of Iraqi exceeded 500.
He explained that he had asked the CBI to express his opinion on the view of the Undersecretary of the Ministry of Finance of the views intersect with calendar «Central» as the sectoral and under the Global System CAMELS, which won a number of banks to degrees ranging from very good and good.

Director of the Association, noting the Iraqi banks Abdul Aziz Hassoun that there are talks taking place in the Commonwealth of Iraqi banks to examine the views of specialists with regard to the decision of the central bank has raised capital of banks to 250 billion dinars progressively over the next three years.
Hassoun said that the Association has urged private banks to merge to form a high capital to strengthen their capacity to work, pointing out that the story was "up to the banks and their capabilities."
Rep. outgoing Abd al-Hadi al-Hassani, said in a statement to the independent press (Iba), the reality experienced by the private banks in Iraq needs foreign expertise to support and opening the door to investments in the sector. He explained that limit the action to swap money with money weakens Kablyatea development.
Hasani said that the most prominent functions that must be characterized by the private banks is the possibility of financing of investment projects is missing at the moment despite the obvious expansion in the establishment of banks, both conventional or Islamic.
The central bank had decided during the month of last March to raise capital of banks to 250 billion dinars gradually over the next three years, which caused lower rates of prices of banks in the Iraqi market for securities because of lack of liquidity, especially since most of the banks with a capital of 50 billion dinars have been Under the decree, raising their capital to 100 billion dinars during the next year.
The question that remains on the table in front of departments, private banks, would it be treated on the basis of what exists now and which proved to be ineffective, including making it a burden on the Iraqi economy, which led to a disgruntled dealers with them, whether citizens or businesses, or they will work seriously to develop their dealings bank to match the size of investment required in Iraq now.
Ministry of Finance, the Central Bank threw the ball in the yard of private banks, to await its action.


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