Central supports increase of Islamic banks & prevents them from "currency auction"...
Central supports the increase of Islamic banks and prevents them from "currency auction" and specialists believe the timing "inappropriate"
Author: ASJ, BS
Editor: BK, BS
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Long-Presse / Baghdad A member of the Iraqi Central Bank board of directors, on Wednesday, to support the expansion of Islamic banks awkward a lot of people to deal with commercial banks in order to avoid, while called the bank to integrate remittance companies to be independent of banks be "more powerful", counting the existence of "a huge number" from "premature Islamic banks" in the current conditions of the country,
The Ministry of Commerce, announced, (the 23 of February 2016), a change of six companies Activity Financial converted to Islamic banks, indicating that it was under the Islamic Banking Act and the Companies Act No. 21 of 1997 as amended, and the approval of the Central Bank of Iraq.
Central bank: supporting the expansion of the Islamic Bachirvh A member of the Board of the Central Bank of Iraq management, Ahmed Rehn, said in an interview to the (long-Presse), "The decision to change the activity of the six companies to Islamic banks came to encourage the owners of remittance to establish banks and companies," he returned to the "best deal with more than one bank and other financial institutions. "
He added Rehn, that "Islamic Banking Act passed by the House of Representatives (the first of October 2015 the past), in response to a request working Islamic banks came", noting that "the Banking Act, and even that of the Central Bank of Iraq, does not offer a lot of bases legal work of Islamic banks being different from the traditional, which we call business, law prepares them legal environment and public event. "
A board member of the Iraqi Central Bank management, that "the central bank decided not to enter the Islamic banking window sale of foreign currency," attributing it because "I do not have the motivation to establish Islamic banks to take advantage of that window because many observers believe that the banks have come to rely on the profits of deal with the sale of foreign currency window and neglected original functions. "
Islamic bank: better for the integration of remittance companies to be a strong independent bank director Conversely invited the Executive Director of the Islamic National Bank, to integrate remittance companies to be independent of banks be "more powerful and safety" in the banking business, because it was premature and there is such a "huge number" of Islamic banks in the light of the circumstances of the country.
The executive director of the Islamic National Bank, Sadiq al-Shammari, said in an interview to the (long-Presse), "The CBI decision to transfer the money transfer companies to Islamic banking, aims to build a healthy and strong base of operations for Islamic finance in the context of a strategy and a clearly defined private and vision, after Islamic banks have become a reality with an accelerating global growth rates have increased up to 17 percent, with total assets of more than US $ Altrliuna in the world. "
He said al-Shammari, it is necessary to "increase the developed Islamic banks' capital to 250 billion dinars to exercise all activities and the purchase of assets," adding, "But in front of these banks big challenges, including lack of technical staffs capable of innovating new products in Islamic banking, or those capable and qualified at the central bank with expertise in Islamic banking and the products they offer, as well as the unavailability of appropriate Islamic banking banking systems. "
He accused the Executive Director of the Islamic National Bank, Central Bank of Iraq, as "still dealing with Islamic banks the same mechanism that handles commercial banks concerning the legal reserve and liquidity ratio of credit to capital ratio and the ratio of credit to deposits and other disciplines and subject to taxes or not." , warning of "the existence of many Islamic banks in an economic recession and the dominance of state banks on the banking sector, as the recent monopoly up to 94 percent of banking transactions and the volume of deposits."
Shammari promised, it is "too early to be in the Iraqi banking arena such a huge number of Islamic banks, because it would be good to integrate remittance companies to be independent of banks have more strength and safety in the banking business."
Financial Expert: No need to undergo any new bank tightly controlled from the central bank
Conversely student financial professionals need to "undergo any new bank, commercial or Islamic, to the tight control by the Central Bank of Iraq, especially in light of the current crisis faced by the country.
Said Bassem Jamil Antoine, in an interview to the (long-Presse), "The banking sector in the unenviable position and suffer stress and lack of homogeneity and the lag due to weak oversight on him and money transfer companies," adding that "the expansion is required banking activity because it does not meet the needs of the citizens if that there is one bank for every 40 thousand people, while the ratio should be one bank for every ten thousand people. "
And saw Antoine, that "some existing banks do not deserve to be banks do not fulfill their duties, and scoffed at the service of families or people who they founded, without offering the required service to the citizens," noting that "ambiguities occurring in the work of some of the banks are now caused by the great fraud that has in the field of money transfer. "
The financial expert, the need to "undergo any new bank, commercial or Islamic, to the tight control by the Central Bank of Iraq, especially in light of the current crisis faced by the country, which require greater vigilance and anticipation of the financial situation."
And started Islamic banking activities in Iraq since (1993) when the establishment of the first Islamic bank in Iraq called (Iraq Islamic Bank), while the number of banks that Islamic banking system trading of nine banks, including Bank of external and another Gulf opened its branch in Iraq.
The banking system in Iraq consists of 54 banks as well as the Central Bank and distributed by ownership between 7 state banks and 23 commercial banks, including special (9) Islamic banks in addition to the 15 branches of foreign banks.