The banking sector .. actually required reform 6-12
The banking sector .. actually required reform
Abdul Zahra Mohammed Hindawi ,
despite the acquisition of a larger area of the banking landscape in Iraq, but the government banks are still facing a lot of challenges that have prevented the performance of their active role in the development of construction required in the country 's process, especially with the intensification of the financial crisis and the government 's efforts to meet the registered in the budget deficit by resorting to external borrowing and the issuance of bonds .
Perhaps the bold step taken recently by the cabinet and of exempting government banks managers an agricultural, industrial and Iraqi trade and Rafidain bank represents a new beginning to change the reality of these banks, which was over the past years - also stresses involved in the banking sector - ineffective but, some believe it was disruptive to some of the important steps that could increase the effectiveness of the banking sector , public and private , both ..
this case Find a negative environment that has alienated the private sector banks to contribute to the investment process, as long as through private banks , owners complained of State - owned banks dominance and lack of opportunity in front of them, as private banks was deprived of a lot of privileges that could have been obtained, including bank transfers,because 90 percent of those remittances are the State - owned banks in the distribution ratio of (10% remaining) on more than (50) banks waged, this as well as private banks deprivation of dealing instruments certified, and such issues that will negatively affect the confidence of the citizen sector , private banks and resorting to government banks in financial dealings, although the banking services provided by these banks are less than those offered by private sector banks ..
here , I hope that my words understood as an attempt to undermine the general government banks or specialized as it is an invitation for the advancement of these banks to deal with some of the bureaucracy with the CBI initiative to grant the private sector a loan of 6 trillion Iraqi dinars to support industry, agriculture and housing sectors by giving citizens soft loans worth 50 million dinars maximum, and the bureaucracy caused by delaying the granting of loans to the beneficiaries, and perhaps this was one of the reasons that the Council of Ministers called for the inclusion of these banks reform process ..
and process change is not necessarily to be the result of the existence of suspicions of corruption and promoting other, but because these managers have exhausted all out of parents visions and ideas of evolutionary and this in turn led to a state of relaxation and sag in performance with the absence and presence of follow - up and surveillance tightened by the Supreme departments at branches scattered across banks Iraq, so find references to these branches a lot of negative images that should not be present ..
here it must be said that the desired reform process will not be completed by changing the senior leadership of the departments of government banks only, and that they represent an important first step in this direction, but it required an operation a comprehensive review of all the reality of government banks details in Iraq, starting from the restructuring and the placement of all activities performed by these banks to the electronic system , or what is known as automation, as we are still seeing a lot of banking business is going on according to the old traditional systems of paper which is causing so much delay in completion transactions of the citizens, especially those relating to the operations of deposit and withdrawal and get certified instruments and financial transfers and other ..
this as well as the possibility of the application of incentives tempting for workers in the banking system and be based on the daily achievement and not about a lump, incentives would pay an employee to make a greater effort to improve the economic reality of Meanwhile, on the other hand contribute to the reduction of blackmail citizens and reduce red tape and periods of eating breakfast and tea.
the other thing that can refer to him here, isthe need to open broad prospects for private sector banks that need the other to re - look at their performance , which is indicated by some these banks are small shops mission is to engage in the daily auction the central bank and buy the dollar and then sell it in the market and achieve quick profits without exercising any banking operations have an impact on the national economy, so should private banks manage search for a suitable , such as resorting to processors banking merger in order to strengthen the financial portfolio to her, and that is that would allow them to compete with the public sector banks in the framework of the reform and opening - up policy pursued by the government to activate the banking performance in Iraq and activate it by about a year, which was enhanced with the consent of the Council of Ministers on the establishment of a specialized company to guarantee deposits with a capital first of $ 100 billion dinars, the existence of such guarantors would the company that encourages the public to save , rather than the phenomenon of compactness prevailing in Iraq because of the lack of trust the public banking system in the country.
the bottom line that the banking reform process will eventually lead to finding a sophisticated banking system represents a pillar essential for development and has the ability to compete with regional banks through the quality of services provided by the plurality of customers by supporting investment projects in various fields.