Iraq: Islamic banks boosted competition in the sector

10/12/2011 | (Voice of Iraq) - Baghdad - Hisham Abdul Wahab - Dar Al-Hayat moving nine Iraqi Islamic banks, along with a bank branch «Abu Dhabi Islamic» in Iraq, to organize their work to fit with the instructions issued by the Central Bank of Iraq for the sector, and specifically in the the field of investment, according to the principle of participation and profit-sharing and rent in the productive sectors and service. The Deputy Executive Director of the Association of Iraqi private banks, high-Nasser Hussain told «life», that Islamic banks, which have increased in number from one bank in 1992 to nine, working to expand its activities investment and promote strong competition with commercial banks, noting that the annual reports and quarterly for most of the Islamic banking refers to the achieved profits rewarding and enhances the spread of its branches in Baghdad and other provinces. He Hussein that the presence of Islamic banks created a kind of strong competition in the sector, which called on the Ministry capital of Iraq to establish an Islamic bank a government with a capital of 250 billion dinars (214 million), also allowed the instructions «Iraqi Central» of commercial banks to open Islamic window for each of the bank «Rivers» and «good» and the rest of the commercial banks and governmental and private, he allocated capital capital of a specific and a specific branch of the practice of Islamic banking. He Hussein to cases of possible merger between some Islamic banks for the implementation of the decision «Central» arrival of the capital of private banks to 250 billion dinars ($ 214 million) as a minimum before the end of June 2013. and announced that the total capital of Islamic banks Iraq a trillion dinars (about $ 900 million), which enhances their ability to implement its programs and expand its banking services. He stressed that the Association is keen to protect any step achieved ambitious sector and is supported, but it is at the same time have the notes about the move to open Islamic windows in government banks, and considered that it is not permissible, because the Islamic banks have balance sheets and accounts of different than in traditional commercial banks. The Iraqi government recently decided to establish an Islamic bank a government with a capital of $ 204 million supervised by the «central» and is administratively linked to the Ministry of Finance. and the transfer of Counsel for the Minister Salam al-Quraishi said, the Islamic bank will work to attract capital and contributes to the larger process of internal banking and banking with the government and private banks, in addition to the open windows in government banks to deal in accordance with the Islamic banking system.