Increasing the capital of Iraqi Banks will help the federal government

Financial: increasing the capital of banks lead to active participation in the development processes of the country
On: Sun 10/30/2011 12:15

Baghdad (news) / report / Faleh Hussein / .. Agree with specialists in the field of banking sector in case Iraqi capital increase of the Iraqi banks will help the federal government to implement their investment projects by borrowing or credit, pointing in the conversations (of the Agency news) to: that the Iraqi banks are still capital is limited and is able to contribute to the economic development processes of the country.
And Deputy Governor of the Central Bank of the appearance of Mohammed Saleh said that the Iraqi banks in the event of increased volume of capital will help the Government to implement their investment projects through loans, cash or credit card.
Saleh said (of the Agency news): The number of private banks too big of more than (37) banks, but still their activity financial limited and did not pose both (10%) of the activity of the banking market in Iraq, the fact that the dominance of government banks in the spending of funds for the purpose of implementing the projects.
Saleh added: government capital is very large and depends on oil revenues, which constitute the annual amounts of cash is very high, and continued: whenever the capital of large banks as their ability to be the granting of loans and credit better.
The Deputy Governor of Central Bank: The interest rate policy is the "double-edged sword," if the reduction will lead to the reluctance of the public to bid farewell to his money in the banks and if the increased cost would be to credit and development is very high, pointing to: there will be calls to reduce the benefits of the deposits to (zero).
For his part, Chairman of the Board of Directors of Bank of the economy Husam Obeid said that private banks private is able to contribute to the development and implementation of investment projects that the capital a few do not fit with the request for investment within the country as a result of these projects as they take a lot of money.
Obaid said in a statement to the Agency (news): If the cost per project (250) billion dinars, the section of the banks did not reach the capital to (100) billion dinars, so do not be encouraged to contribute to the huge investments as a result of low stock prices for banks own.
Obaid, warned of the use of funds deposited by the citizens or the public to contribute to the country's investments and development processes are not considered as fixed capital for the banks because it is subject to withdrawal at any time can not be disposed of.
The Chairman of Board of Directors of Bank of the economy: a law may not rely on the amounts deposited increase banks' capital or meet the requirements of the banks, adding: that the central bank is watching this situation and take part of the deposits and put a reserve of him, because it is not true that rely banks to raise capital funds on deposits.
With one financial expert Ghazi Kanani said that in the event of Iraqi banks increase their capital, they will contribute to the economic development of the country and investment in all activities by spending money for projects, noting: that most of the Iraqi banks depend on the size of deposits in the capital increase.
He Kanani in a statement to the Agency (news): The amount of money deposited in banks depend on the increased interest rate that is, when increasing the interest rate to pay the public and companies to bid farewell to their money, which increases the size of banks' capital, and continued: that the annual reports issued by the Securities Commission financial evaluation of the banks indicated there is an increase in the size of banks' capital increase with the size of the deposits.
The financial expert: The private banks continued to provide assistance and contributions to the state by giving loans and letters of guarantee from the bank, despite the lack of full support to it by the federal government or the public sector.
It is noteworthy that at the end of the year (2010), the number of banks operating in Iraq have arrived in (43) banks, including (7) state banks with total capital of about First Ha (6036) billion Iraqi dinars, as well as (36) private banks totaling capital up to (202) trillion dinars.


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