Experts: the reform of the financial system in Iraq requires the support of private b
Posted: September 28, 2011
BAGHDAD (Iba) .. The report re-passed by the World Bank a few days ago, private banks in Iraq and the need to find the necessary support, including contributing to the advancement and contribution in support of investment projects.
The report noted that the Iraqi banking system damage growth prospects in Iraq must be developed in order to attract foreign investment and diversify the productive economy of oil.
In this aspect She stresses the economic peace Sumaisem in connection with the independent press (Iba) that there is discrimination in the work of private banking institutions by the State Marshal to keep all the state departments of banking in the opening credits of private banks.
The Central Bank report said that seven state-owned banks dominate the banking system has 89 percent of bank deposits. ” Experts said that “many of these banks provide limited services and most commercial banks do not be acting work and some selling cars.
Sumaisem stressed that the private banks and the banking sector can not achieve growth without creating the necessary laws for that, noting that the government is still treated as if the financial sectors of the State, including the stock market confirmed the need to enjoy the full autonomy of these sectors.
She noted that we need to look in the new economic policy of the state and a real belief stems from a scientific view towards true free market economy, indicating that the laws are still centralized and treated centrally directed economy with the rule of the tendency of government control over the various sectors.
She noted that the economic sector of Iraq now in the research phase of identity, indicating that we now need to determine the terms of monetary policy and economic Alsaah Lage, because each party understands the role and the ranges of work and duties.
World Bank thought that the Iraqi government must order the balance sheets of banks and strengthen the supervision of the financial system and create the conditions for competition from the private sector. Noting that “in order to improve the balance of the economy there is a need to deepen the financial sector to support the growth of non-oil sector.”
Indicators that economists and World Bank report notes indicate the actual need for the start and urgent to build an integrated banking system in Iraq and support of private banks, and perhaps should, and now the Ministry of Finance to cancel its decision to ban government agencies from the opening credits of private banks.
It is incumbent on the private banks that are looking for ways to enable them to raise their capital to the ranges that qualify for a bigger role in economic life and investment in Iraq, and could require a declaration of integration of a number of small banks with each other or with the banks bigger.