Academy economic: the restructuring of the banks first step to establish a comprehensive bank

News Source: Ali Abd al - Salman

March 30, 2016 15:36

An academic economist said that the circumstance that Iraq is going through need to have a functioning banking sector to lead its real role in supporting the Iraqi economy and society, which was the most prominent target of the establishment and spread of private banks.

Economic and academic Dr. Essam Mahouelle said in an interview carried by the "morning" that Iraq had a number of good Not from private banks that originated in the nineties of the last century in order to be involved in supporting the development process along with the seven government banks.

He said it is essential that the private banking sector to reconsider in his role in the economic process in conjunction with the central initiative in the granting of production, development loans to the public, calling at the same time the need to start a new timing of development through the study of the idea of the merger to create a cartel banker national (Bank of developmental inclusive) capable of implementation of infrastructure projects, especially since the country in need of such a bank to take over the financing of vital projects.

He Mahouelle that the restructuring of the sector is necessary first precede the establishment of such a bank or a banking union as a step for the separation of administration from the capital makes it an effective financial institutions , private banks rather than institutions or just family firms limited activity.

He pointed out that Iraq has witnessed in recent years , entering the branches of foreign banks to the scene requires the presence of a virtual competition between local banks and foreign counterparts provided that they are equal to the purpose of the service economy. Mahouelle felt that there is a very limited number of private banks that operate efficiently in the arena according to the standards enabled it to gain public confidence and a slide was not bad from the depositors.

The work in Iraq 41 banking financial institution , especially falls under the umbrella of private banks , which was founded in 2004 and comprises 24 commercial banks , the Commonwealth nationally as well as seven Islamic banks and 6 foreign banks in addition to the presence of four of the chock of the banking business of banking companies.

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