Mehdi al-Hafez: the banking sector and financial inclusion gate pillar of sustainable development

​In his speech during the third Iraqi banking conference MP Dr Mehdi al-Hafez, on Saturday, said the private banking sector could have a greater role and effectiveness of the worst in the economic and investment life and progresses because an effective leader in public life, a Gateway Financial Inclusion and a pillar of sustainable development. He said in a speech during the third Iraqi banking conference that «the conference comes in the midst of a large and complex crisis in Iraq and the center of interactions and collisions regional and violent in some Arab countries, which raises many questions about the point of the overall work and means of easing crises successive economic and security« .

He added that «Iraq today, is going through at the turn of a broad, where the accelerating crisis in most areas, and stand out in the foreground governance crisis and the worsening of the phenomena of deterioration in the economic life and the intensification of the intervention and foreign occupation that threaten the country's unity, sovereignty and pay to unknown heights. Iraq can not continue for grabs to any internal or external greedy. And we have to regain the national Tlahmh and the unity of the country and reconciliation between social classes and build a solid and balanced economy and get rid of complete
dependence on oil revenues and falling in front of the difficulties and internal challenges impeding the real development and the evolution of the economy in a sustainable manner and in all fields, particularly the production of which «.

He drew Hafiz his speech to the participants of the Arabs at the conference saying «Today we usher your presence as guests loved ones and representatives of the Iraqi and Arab banks and some investment bodies and see in the large meeting you this vital window to go in the way of progress, innovation and building a sophisticated life in Iraq, and offers a helping Capricorn for revival of the banking sector and make it tailored more with global developments and technical transformations and the needs of new generations in our country ».

He pointed out that« banking crisis in Iraq is a prominent part of the economic crisis experienced by Iraq years ago and undoubtedly require a radical solution to the country provides a financial resource and support economically feasible. Although the number of private banks in Iraq, not to exceed fifty, but it can be a powerful Mattaoua compared with basic government banks, which amounted to six banks, a «Rivers« and «rational« and «Trade Bank of Iraq» and «Real Estate Bank« and «ACB« and «Industrial Bank«, pointing out that «four years ago issued a« Bank »in coordination with the Ministry of Finance and the Central Bank of Iraq and a detailed report on the status of banks in Iraq and came out findings and recommendations of the task about ways to advance the private banking sector. He said the banking sector crisis is the side most dangerous in the reform process of the desired ».

The MP said« the results and recommendations of this report did not take the process for proper application and continued private banks crisis without any modification important, despite the efforts and good attempts by some official bodies. It looks far more difficult than the previous because of internal crises of Iraq and subjected to difficulties and attacks of Foreign Affairs and the intensification of declines in economic life, especially in the standard of living and widespread unemployment and the deterioration of services and the dominance of corruption in public life ».

He said« in the report «World Bank« referred to earlier, is emphasized the importance of dealing and proper balanced between government banks and private banks and calls for the promotion of private banks through the provision of aid and the overall experience and technical development and handled in an equitable manner in terms of providing official deposits and allow more flexibility in daily trading. After a dozen years of political change in Iraq is still State-owned banks are the executive effective in fiscal and monetary life. More than 90 percent of the deposits go to the state government banks. Also, a lot of government commitments undertaken by these banks which are in fact the stormy Atjara winning development in the world in terms of flexibility for the direct process performance and developments. Reform is not achieved today unless changed roles for which the image of the government and private wings Almsrvian. After a lot of attempts and declared the official data, this can not be the image that is being changed unless the official restructuring banks in Iraq and make them more eager to interact with local economic needs and global developments. Drop by to start is to change the relationship between the wing and the available case of a real balance between the two and is available for private banks serious conditions necessary for the advancement. A number of documents have been prepared for this purpose, but it did not come with something positive so far, particularly the United Nations and project »State Authority advisers« which was announced two years ago. The weaknesses in the practical path mainly includes a review of some aspects of the Iraqi Central Bank policy and reconsider the most important of the so-called auction - or sell the currency, think about finding another tool for the advancement of this task. There are calls to be from the Ministry of Finance, the official Alhah responsible for dealing with outside criticism and the formation of the reserve balance of the state. This proposal seems reasonable and commensurate with the safeguards to reduce the risk of looting and exploitation and stand against attempts to «money laundering». In recent accusations intensified the existence of a defect in dealing in this area was not convinced among the wide importance of having sell the currency on the way accompanied by suspicious attempts and could not have them complete the transaction in a manner provides state the benefits «.

Dr. Mehdi al-Hafez said« progress in this way, offers the possibility of the other to maintain the unity of the monetary policy in Iraq. The presence of «Central Bank of Iraq« is an expression of the sovereign right of the country, and care should be taken to develop it and make it tailored to the different needs of the country as a whole. This is what is happening in the countries of the world ».

He added that« the goal of all this is to provide an appropriate atmosphere to walk in the path of economic reform, as stated in the official documents of the government programs that emphasize adherence to the «market economy«. The fact that this claim is not new. In the first period that followed the political change (2003) there was a formal claim to abide by this formula and issued some laws for this purpose, but the practice continued walking as if the country has not changed economically and did not reform factors are available. Valtmsk «market economy« is the one who provides the private banking sector because of the tool will be leading the desired reform. This is valuable experience that can call her in order to achieve this goal «, stressing that« the private banking sector could have a greater role and effectiveness of tougher economic and investment in life and progresses because an effective leader in public life.