Specialists: Islamic Banking Act meets the requirements of the market and threatens to commercial banks

Author: ASJ, HH
Editor: BK, HH

2015/10/04 10:29

Long-Presse / Baghdad
Counting banks managers, on Sunday, that the legislation of the Islamic Banking Act, meet the requirements of the market due to the "big successes" achieved by these banks despite the old palace, expressing the hope that the development of an effective model it and build institutions able to work according to its own rules without "circumvent" on financial products, and with expert opinion that the law will enter those banks official control scale, and allows them to work about "fair" with commercial counterparts, he warned of the consequences that this will contribute to the weakening of the work of other banks as a result of "lack of confidence".

Said the managing director of the Iraqi Islamic Bank Sadiq al-Shammari, said in an interview to the (long-Presse), "The calls launched since 2004, the need for a law regulating the work of Islamic banks in order to ensure freedom of banking deal in the private sector, and the desire of many of the opening of such banks or branches in Iraq ".

Shammari said that "Islamic banks experience faced enormous challenges most important to work with the commercial banking without a law regulating their work, as well as a lack of understanding or the presence of Angels eligible for this type of banking business, as a result of entrenched mentality interest instead of participation and profit muslim, any sheep base Balgrm any profit and loss "noting that" Islamic banks are investment and trade and not exercise faith mediation only. "

Shammari stressed that "Islamic banks in spite of the old palace which does not Athaoz 40 years, has made great achievements," pointing out that "the House of Representatives legislation to the law of Islamic banking, meets the requirements of this work in Iraq, especially with the presence of eight private banks operate in accordance with Islamic banking, as well as one state bank, and branches of foreign banks are supposed to operate according to the law of Islamic banking to their countries of origin. "

He Shammari, expressed the hope that "the development of an effective model for Islamic banking in Iraq, and to build institutions capable of operating in accordance with the system of Islamic banking, without circumventing the products of that system, whether at the level of Murabaha, Mudaraba, sharing, leasing, sale peace contracts or Istisna'a and other products than they offer commercial banking. "

In turn, the banking expert Fouad Al-Sulaiti said in an interview to the (long-Presse), said that "there is no law for Islamic banks will enter into the control box by the concerned authorities of the Central Bank and the Office of Financial Supervision and the Office of money laundering, as it allows them to work at about fair with business counterparts."

He explained Sulaiti, that "the work of Islamic banks probably will benefit the citizens who have lost confidence in commercial banks," noting that "most of the commercial banks, and even the government, opened a window for Islamic banking."

He stressed banking expert, that "the other hand, it may weaken the work of commercial banks, because of the lack of confidence in them, and some fear that the dealings especially prudent loans, is a kind of usury, the benefits of being a charge on them."

He was placed source in the Ministry of Finance, revealed in an interview to the (long-Presse), in (the 28th of September 2015), about the intention of the ministry the opening of the first multi-branch government Islamic bank, during the year the current 2015, noting that it would be capital of more than 130 billion dinars.

The Iraqi Council of Representatives, the voice of the majority, in (the first of the current October 2015), during its 25th legislative term of the first second legislative year, the project of the Islamic Banking Act.

Islamic banking activities in Iraq began a year ago (1993) at the founding of the first Islamic bank is (Iraq Islamic Bank), while the number of banks that traded nine Islamic banking system, including an external one and another hit (Gulf) to open a branch in Iraq.

The banking system in Iraq is made up of 54 banks, as well as the Central Bank and distributed by property between (7) state banks and 23 commercial banks, including Islamic nine special addition to the 15 branches of foreign banks.