Wednesday, February 15, 2012

Specialists are demanding to amend the law of private banks

15/02/2012

Baghdad morning
Called for a number of specialists in the economic and banking on the government to modify some brought by the law of private banks and consistent with the nature of the economic transformation of Iraq into the open market, noting during the interviews that some of those decisions can not meet the requirements of the current phase in Iraq's transition to the steps of the local economy more.
The head of the Association of Iraqi banks Halawi appearance: The Banking Law No. (94) for the year 2004 needs to be reviewed in full, there are many variables that occurred in the country and in the work of private banks.
He explained that despite the amendment of Article (28) of the Act that prevented private banks from participating or engaging in large projects in Iraq, but that this amendment did not meet the ambitious, pointing out that the amendment was simple and unable to make way the doors work.
According to that article (28) of the Banking Act provided for the support leave any bank exercising or participating in the trade of wholesale or single or manufacturing processes or transport or agriculture or fisheries, or mining or building or re-insurance, or any activity or other work is not licensed.
For his part, says Deputy Governor of the Central Bank of the appearance of Mohammed Saleh: The Banking Act is an advanced being authorized to open branches of domestic banks in partnership with their counterparts in the countries of the world but he put in a hurry and it's time to amend it because it contains contradictions and to bring it in line with the development of economy and development in the country.
He pointed out that the Banking Act only mode of investment, including usury did not affect Islamic banks which are based on profit-sharing, despite the existence of a draft special law regulating the work of Islamic banks.
The number of Islamic banks from one bank in 2003 to ten banks so far, including the Iraqi Islamic Bank and Islamic country, and the Islamic Corporation, and Kurdistan, and the Tigris and Euphrates and regional cooperation.
In turn, said banking expert Samir Nasiri, the contribution of the private banking sector development need to be several legal amendments, and the achievement of equality between them and the government banks, as well as setting up a company to ensure the credit of all kinds.
Stressing the urgent need to build a national economy dependent mechanism and a new structure for the transition from the private banking sector, the role of financial intermediation to the developmental role and in light of the crisis affecting the economy.
The Mediterranee to the banks in need of amendments to the Central Bank Law and to review the legislation currently in force on the basis of offer and help to invest, including in particular the Banking Act of Articles (28) and up (33), and the law of the Securities Commission and the enactment of the new financial investment.
And a provision should be reconsidered doubtful debts in accordance with the indicative list and give the flexibility and extended additional time for banks to be able to liquidate this debt which is due mostly to earlier periods where most of the debtors migrated for security reasons.
He explained that those debts impede increasing the capital of banks because of the reduction in profits earned as a result actually deducted from the net profit and in turn affect the activities of the new investment banks.
To the said Director General of Trade Bank of Iraq Hamdiya dry that the bank seeks to cooperate with the private banks through partnerships to support economic development, noting that its bank is seeking to form an investment fund to finance projects.
The dry: the banks need to enhance the confidence of the street and public sector alike, pointing out that the increase in bank capital is not the only factor in the development or increase the confidence and credibility, but at work.
It is noteworthy that Iraq declared earlier to postpone the program for restructuring the financial system of Iraq until the year 2013, which included the restructuring of the largest banks Iraqi owned by the state and are the Rafidain and Rasheed, and restructuring of the Audit Department at the Central Bank and the development of the private banking sector.
The central bank said in November of the year 2010, that foreign banks operating in Iraq do not work independently but under the umbrella of the local community banks, indicating that the investments of the regional countries with a commercial character and lacking in international standards.
The Ministry of Finance has announced that at the end of the month of January of 2011 for its efforts to open an Islamic bank under the Ministry of Finance based drop the interest in the Rafidain Bank and Rasheed.
The number of Arab and foreign banks made after the enactment of the banks to get licenses for the establishment of private banks, either by (100) percent or in partnership with local banks, but security conditions have prevented the exception of some minor posts that have been made with a number of banks.

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