Abdul Hussein Ali Mundhiri *
These banks account for 90% of the volume of banking in the country and represent deposits have accounted for
85% and almost the remainder of the share of private banks. These banks have extensive branch network in the middle of Baghdad, where the exercise of public administrations and the main branches to the maximum four sides and border crossings and suffering of these banks from the international sanctions that brought the country's economy by the United Nations on the impact of Iraq's invasion of Kuwait in 1990.
The sanctions have affected negatively on the performance of These banks and made them suffer from lack of use of modern mechanization and suffer from legal problems affecting the foreign activities and the foreign transactions threw herself on the Trade Bank of Iraq, which was established in 2003 to assume the open foreign appropriations for imports State instead of the Rafidain and Rasheed, and this bank exposure to mismanagement of the previous period which impact on its financial position as a result of the debt has not recovered most of them so far.
Islamic banks, like did not provide something tangible to support the national economy and that its assets have been weak not to exceed their capital only a few of the lack of these banks rose to the basics of the work of the Islamic finance industry, but some of them did not appoint an oversight body the legitimacy of its contracts to allow him and his business because he did not exercise such as Murabaha Islamic banking work in goods, automobiles and housing was also practiced participatory processes, peace and Istisna'a residential complexes or different industries.
That is why the public stayed away from participating in its projects with them and deposit his money has.
And that the Islamic Banking Act not been issued yet. Now came Islamic Banks role as development banks and investment to exploit the opportunities available to them and that you need reconstruction projects in all areas of Iraq from north to south.
This was the committee formed at the central bank on the verge of issuing a list of instructions will issue Islamic Sukuk to collect big money and inject capital in generating investment projects of income to be available to Islamic banks and government and central bank to issue several types of instruments to finance projects and to achieve good returns and profits of intervention through which Islamic banking to the capital market of the wider doors and strive to prove themselves and get a considerable share of the volume of banking after the banking arena has remained under the control of commercial banks for several decades.
But the success of the Islamic Sukuk in project finance and public budgets, the state took some states the inclusion of revenue due Asthsalha through the instruments of the Islamic general budget of the State and its importance and the need for the economic sector in our country to this version, it requires mass information campaign through various media to promote it and publicize conservatively for investors, politicians and men banks so that this experiment succeed and achieve its goals was the Islamic Mesopotamia Bank began promoting this version, according to its potential available and will intensify when the issuance of instructions from the central bank and will continue in that I do not mind to manage rivers Bank of the convening of seminars and economic forums to explain this experience and make them known.
It must be noted finally that the Islamic Sukuk are investment instruments are not debt instruments.
Circumstances pressure on the national economy and the budget because of lower oil prices and large numbers of centrally-funded enterprises as well as the number of retirees and employees covered by social welfare that depend on oil resources entirely, the responsibility of banks was now It is greater than ever before to activate the various sectors of the economy through funding or investment in order to contribute through its social responsibility in reducing the incidence of poverty and unemployment.
To improve its performance requires rewriting its goals commensurate with the current and the next phase requirements and including the following:
1 - Participation and dispose of good loans development provided by the central bank and finance existing projects and researcher for expansion as well as the financing of new medium and small projects submitted by the feasibility study supports the importance and the high level of success expected to strengthen the grants committees and commissions of follow-up monitoring and implementation cadre efficiently.
2 - improve and evaluate the performance of money laundering officials and monitor compliance and sections control in banks because some of them as proven irregularities discovered in the banks was absent from what is happening in his bank.
3 - Seeking to establish a banking business, similar to what It exists in the rest of the countries to take responsibility activate the various sectors of development funding and investment.
4 - re-work the annual credit banks plan and allocate substantial amounts for lending are distributed according to the needs of each sector of the diverse sectors of the economy and pursue implemented by the departments of banks and percentages completed. And the evaluation of the bank in the light of the size and types of credits granted and the level of its customers base.
5. intensify efforts to establish a deposit insurance company to its importance in promoting public confidence in banks.
✽ in Mesopotamia director of the Islamic Bank