Sat 10/01/2011 7:54
Invited expert to the economic integration of small banks while confirming the existence of problems facing the stability and effectiveness of the local currency in the banking system remained underdeveloped.
Dr Thoraya Khazraji The Iraqi dinar is facing challenges such as: rates of inflation and the mechanism of deletion of zeros, and the process of modernization and development of financial services and banking, which collides with the reality a bank suffers a number of problems.
She added that among the problems facing the banking reality of Iraq and there are two banks government two main Rivers and good addition to a large number of private banks commercial, two-thirds of capital goes to the government banks, while the remainder attending to those of commercial banks, in addition to the presence of the problem of lending, credit and investment, as government banks which occupies the first rank, while the share of private banks occupies almost one-third. It continued: It is a negative phenomenon in the Iraqi banking sector, as noted by the lack of full use of the system, credit cards, relying instead monetization (Cache) only, a phenomenon found in Iraq, unlike neighboring countries, poor economic sense and relatively that Ataatoagd the capital large compared to Iraq.
She noted that there are some laws and customs prevailing mentality that rejects renewal, and those signs of weakness in the banking sector must be addressed prior to accession to the WTO, particularly the ability to negotiate an important factor in the success of Iraq to address these problems and challenges and make the right decision, especially in the banking sector, because we face great challenges to coincide with the arrival of a giant foreign banks to operate in Iraq, and the presence of a large number of small private domestic banks, which could not only compete with these foreign banks.
They pointed out that there are issues that clearly point to a state of underdevelopment in the Iraqi banking sector, as the Central Bank of Iraq on according to Law No. 56 of 2004 is is the responsible authority and official that determines monetary policy, especially with a good management that contributed to the reduction of the manifestations of inflation systematically, especially if inflation rates were in the year 1995 by about 365% in the year 2011 inflation rates of 3%, which is an achievement calculated to manage the current Central Bank.
She stressed that there are other achievements made in the area of financial policies, banking and other commercial and others, and the Central Bank has made contributions in the field of regulation of the balance of payments, especially with the existence of a technological revolution and electronic in the use of modern methods and advanced, including the area of work of banks and banks, can now per capita transfer large amounts of money in one moment, sitting in his home or office via a network (internet).
She said that despite that there is only four banks only in Iraq are dealing with the Central Bank system, electronic payments, while the rest Aajerh for technological catch-up, which requires the restructuring of State-owned banks, who are not taken through a system of privatization, but also kept within the government sector and work to improve its performance towards achieving the best banking performance.
Showed that there are some proposals need to be taken into account for the way forward in the way to address the imbalance in the mechanism of action of the banks and the subject of mergers banking, especially with the presence of some small banks that should unite with each other or with banks, other large, to be able to compete in the banking sector which increase of capital used in it from time to time to cope with developments in the world on the one hand and the activities of foreign banks giant on the other.
She explained that it is important here to activate ways of cooperation between local banks on the one hand and foreign banks on the other hand in order to achieve the best performance of the banking business in Iraq, and the restructuring of State-owned banks and the development of the Iraqi market for securities, particularly as it is the market initially is the trading of securities, in While lacking the presence of global markets for securities, as well as private banks legislation their own laws to stimulate domestic and foreign investment, and provide the appropriate atmosphere for him, which is the responsibility of several parties, as necessary to improve the performance of bank personnel and bring the talent bank to work in this sector , especially with some leaders of the sub-professional non-degree holders in the sector are not eligible for those tasks.
