Invitation to adopt a sophisticated banking system is applied gradually and reduces .
pay most of the economists of the banking sector much attention for his role in the development and there is a consensus that the banking sector has seen some shifts in its direction according to the shift in economic philosophy of the country in order to keep up with current developments in the world, and with the central bank and Ministry of Finance are working on improving tracks monetary and banking, but the reality of the situation and in general reflects the indicators hinder and limit the activity of this device with all its components.
In an exclusive interview for «morning» said an economic expert Ikram Abdul Aziz said most banks in Iraq working example venture deposits are safe and deep-frozen and this in itself reduces the activity of Iraq’s economic and identifies indicators of growth required The statistics showed the central bank that the average liquidity ratio of banks operating in Iraq (51 percent) is higher than the ratio of standard amount (30 percent).
She noted that the banking system needs to develop and regulate the process of converting the money to Iraqi banks more broadly which are made through other banks in the region such as Jordan or United Arab Emirates It is worth mentioning that there is a need to expand the number of banks in Iraq and its support to play an active role in the process of transfer of funds electronically for the purpose of paying salaries and procedures for transfers of internal and external bridging the needs of the other variety.
Abdul Aziz noted that the use of ATM is on a small scale indication of the lack of expansion in the use of modern technology, similar to countries in the region and the observation of a simple van up to 20 percent of Iraqi citizens are the only ones who have a bank account, while 80 percent prefer to cash banking, pointing to their own devices Phone Laptops do not use the machines in the banking services with the offer that the company’s money for services electronic banking is available and pause at this indicator, we find that urgent need to educate the importance of orientation of the banks on the one hand and the adoption of means banking to simplify the procedures with the show that mobile phones in the world within the scope of its service banking This is not possible to happen in Iraq if it did not so they can be the adoption of serious steps for the advancement in the banking and pay technology in all its forms, including banking the importance of a prominent and there is a request from a company Asia Cell for this purpose serves this trend, but there is an important reason for the activation of the expansion of this requirement is the absence of the law of electronic banking.
On the subject of intensive bank has one branch per approximately 40,000 people, is low when compared to other countries, while Saudi Arabia, for example, of 3500 people, and the view of these indicators is clear to the lower rate and extent of the need to expand services in this area with the hypothesis that the percentage standard is 10,000 beneficiaries for each branch.
Abdul Aziz said: There is another problem which is twice the credit facilities granted to the beneficiaries and specifically in relation to plead for the purposes of development and the like as well as that, despite the Central Bank to expand the scope for granting credit are still banks is able to supplement the housing projects and development, including needs the other hand a narrow range to deal the banking system with the stock market which reflects the need to expand and comprehensively deal with the banks, especially as it deals with one bank and the suffering of the banking system from a lack of expertise and competencies of quality specialized in the field of banking to by sagging administrative apparatus banking preparing cadres of superiority needed and lacked the added quality by acting as a disguised unemployment does not differ so the banking system for Iraqi ministries and institutions is reason to reconsider this fact in all his joints, and here specifically the banking system and the absence of banking awareness among ordinary citizens, a motive for keeping their money in order to avoid losses due to any disturbance or disruption of potential and the need for banks to provide sufficient reserves for bad loans payment and late as well as the need to reconsider some of the relevant legislation the banking business in an attempt to bring them up.
It showed that the volume of outstanding loans at state banks amounted to up to 193 billion dinars, compared to 50 billion dinars in private while the volume of overdue debt repayment in Iraqi banks 459.3 billion dinars, including 190.1 billion dinars, government, and 269.2 billion dinars particular, poor and limited banking services and not adapted to the requirements and economic needs as the number of services up to 15 services compared to making available Article 27 of the Banking Act, which amounted to more than 50 banking service and the existence of character banking being a family reflects the integration of management with the property as well as by the absence of strategies banking effective and detailed plans annually with most of the banks beside the lack of banking institutions that support such as insurance companies (on deposits large loans the cycle of market risk).
either on the movement of reform, the current under development procedures adopted by the Central Bank of Iraq to improve the performance of the banking system, the question arises, the same about the way the reality of what to do in the Central Bank and the Ministry of Finance to resolve these problems and constraints in order to fit the environment of monetary and fiscal fact that the repaired will fit the economic environment and speed up the development process based on the banking sector and financial sector with a depth of an active and influential on economic activity and from here it becomes apparent that the monetary authority and the Ministry of Finance worked together during the last period to improve the performance of the banking system by many measures the most important of activating the role of government banks, including banks, specialized and the transfer functions of the three banks to the development and work to strengthen their capital according to the Economic Commission decision taken in March 2008, up their capital to 200 billion dinars each for 400 billion dinars for the Rafidain Bank and 300 billion dinars for the Rasheed Bank.
As well as the adoption of instructions for the establishment of Islamic banks and to allow the conventional banks to open windows to the practice of Islamic banking as a need socio-economic and development system for the collection of information, financial data and analysis, and application of the standard of disclosure and transparency by financial institutions, banking, and improve the performance of banking institutions of government through the application of the Memorandum of Understanding and a step of work attached them, as well as develop a cadre Central Bank of Iraq through their participation in training courses inside and outside Iraq, and promoting the use of automation and software computing in the banking system according to a plan prepared for this purpose and the expansion of use gradually, in addition to the development of policies relating to credit, investment and other and applied as the requirements of the Banking Act force, and the establishment of private banks to provide loans collected in excess of the financial capacity and credit of the bank to reduce the risk of a single lending and do not exceed the legal ratios.
They pointed to the importance of addressing the concentrations of credit finance and focus efforts on collecting loans and overdue debt repayment and the development of financial reserves to cope with risks, and to study the customer a student loan, whether an individual or a company by analyzing the balance sheet and cash flow for the project the borrower, and insurance on large loans through the Iraqi Company for Bank Guarantees and the Iraqi insurance companies, and the promotion and development departments and internal control systems of banks in proportion to the volume of work and banking risks.
increased to visions of the future to repair the banking system to graduate in terms of intensifying pursuit of the Iraqi government and revitalize the banking sector, the government along with the private banking sector and mixed as well as the need to develop a strategic plan comprehensive and varied for the development of the technique used in the banking system and linking the banks network connections and extensive information included in the scope of the adoption of methods of control and financial disclosure and accounting on the financial aspects need to put adequate precautions deliberate, according to the programming of time it enters the element of expectations to meet the element of risk in the banking business through the possibility of the emergence of loans late payment or investment is poor, or enhances the durability of capital and stressed the importance to intensify media awareness about banking developed in all genres in an attempt to attract the average citizen about the devices as it should so they can be the adoption of banking environment law subject to review, development and modernization of all aspects of legal as well as future plans for the establishment of private banks modern in terms of doing the merger process and allowing them to capital broader and banking activities more sophisticated and scalability, and concluded to talk by saying that the reform program proposed is the involvement of the government to the private sector at rates consistent with the Central Bank and then be reduced floor area of government banking at expansion of the private sector so that it can to keep the government sector accounted for 20 percent to be the private sector, which holds that the detailed dynamic measure of the progress of knowledge and financial solvency, reputation and possession of advanced technology.