Experts reveal the causes of the Iraqi banking sector declined in the current restructuring

2201 2016
Weakness and confusion in the Central Bank instructions and the low efficiency of control
The whole Iraqi experts on the banks failed to keep pace with development in diverse aspects are de-banking business, and stressed the need for the Central Bank of Iraq and I do stronger in policies related to updating enterprise architecture management and strengthen oversight role.
He attributed the banking expert conciliator Hassan Mahmoud, the reasons for failure of the Iraqi banking sector current Bhacleth, to many factors, including the "weakness and confusion in quite a few of the instructions issued by the Central Bank of Iraq between now and then, and withdrawn or modified days after." It did not lose sight of "the low efficiency of the banking supervision and professionalism, but lack of seriousness."
He said that these control methods on the banks, "not kept pace with the evolution of central banks in developed countries and in neighboring countries, including preventive controls, in addition to the lack of the banking system to the corporate governance rules needed to monitor the performance of boards of directors and those of the Executive, and validation of the commitment of the laws, regulations and instructions, and the lack of sector for culture Banking risks and ways to evaluate, manage, and ways to mitigate or reduce them. "
Also included reasons, according to Mahmoud, "the emergence of the governing bodies and departments of a bank is not related to the professional nor experience nor knowledge of banking work, and lack of qualifications does not have only a sudden financial fortunes hovering suspicions about their sources."
He Mahmoud in an intervention presented at a seminar organized by the "Institute of the progress of development policies" on the relationship between private banks and the Central Bank of Iraq, and the participation of experts in finance and economics, that this sector, "small and marginal does not exceed its contribution to gross domestic product ratio of 1.5 percent."
He said: "If we add to him the financial sector increase to 1.75 percent, which is facing the problem of the dominance of state banks to between 85 and 90 percent of the sector's assets."
He said that "it hinders the development of private banks, which records diminutive in credit relative to output, as the value of what gave him the banks of credits 23.6 trillion dinars (about $ 23 billion) in 2013, 8.7 percent of GDP, as opposed to 55 in percent in the Middle East and North Africa. and arrived at government banks, including the share to 72 percent, while the share of the sector capital is 19.5 percent only. "
He pointed to another problem facing the banking sector "The faintly funds that do not meet the needs of development capital, as well as other sources of funding." He pointed out that the number of operating banks "is 54, including seven state-owned and 30 private banks including 23 commercial banks, 7 Muslim, while the number of branches of foreign banks and 17".
And saw economist Ahmed Alobreha, that "a manifestation of failure in Iraq is not the government's ability to enforce the law, as the central bank is unable alone to impose control and evaluate the level of banking performance."
Financial Advisor to the Prime Minister stressed the appearance of Mohammed Saleh, that the banking market "heterogeneous under the State-owned banks to attract capital and deposits, accounting for 90 percent of them, to keep their special 10 percent." He explained that "the last government and private banks operate according to the nineteenth century systems."
And he declared that "adults who get a credit of 12 percent, and with each failure banking transaction due to tripping withdraw 32 treatment", as the private banks "are very conservative and government contrary, is evident from the large loans granted by the recent size."
Turning to the currency auction in favor of a file, adding that it "is important and necessary," and asked, "Can you create a bank to the private sector will be the opening credits of his duties and the centrality of the shift gradually to cover imports"?
The banking expert Samir Alnasiri cautioned against the "collapse of the banking system in Iraq soon in the event of problems faced during this year did not address."
He stressed that the collapse "means the collapse of the economy." He pointed out that research and studies and the results of indicators "do not receive the attention evidenced by the decline in deposits recorded by the five largest banks in Iraq, as well as the low liquidity and operational, credit and capital investment and profits, without losing sight of the impairment of assets." He stressed that these indicators are "serious."
He described the MP Mehdi al-Hafez control which is supposed to be exercised by the central bank to "weak and confused". He announced that the sale of dollar by the central bank operation "represents a sensitive issue for the citizen, it is assumed that the process of transforming normal amounts be easy as they are in other countries."
He stressed "the lack of separation between what exists in the Central Bank and the banking sector transactions, and the corruption that exists in the state." He stressed that "the decisions and orientations taken after 2003 was different from what it is today, as it was an agreement to enable the Central Bank to play a new role."
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