Interview with Mr. Ayman Abudhim (Managing Director) in the World Bank Magazine Issue No. 55 - April 2019

by **claud39** Wed May 08, 2019 9:59 am

Interview with Mr. Ayman Abudhim (Managing Director) in the World Bank Magazine Issue No. 55 - April 2019

Monday, May 6, 2019

Interview with Mr. Ayman Abudhim (Managing Director) in the World Bank Magazine Issue No. 55 - April 2019 CB%20Image%20730X300

Iraqi National Bank .. A successful model picture of the Iraqi banking sector, reinforced by absolute transparency and modern financial services
How do you assess your banking activity in 2018, and highlight the results you have achieved?

2018 was a difficult year for most of the Iraqi banks, where the improvement in the dinar exchange rate had a negative impact on the results of banks, which relied heavily and essential on the currency auction and the difference that can be achieved through this process. Today, we started the Iraqi National Bank to change our strategy to adapt to the new reality. We started to focus more on basic banking, such as opening letters of credit, lending to small and medium enterprises and individuals, and settling salaries. For us, 2018 was a founding year, and we expect to begin to feel positive results in 2019, 2020 and the coming years.

What are the main sectors in which you provide services?

We have created a balance between all sectors. In the field of documentary credits, we try to target the most important and largest companies in various fields such as pharmaceutical companies, food, cars and others. In the sector of small and medium enterprises, we were the number one in the exploitation of the initiative launched by the Central Bank of Iraq to support these institutions worth one trillion Iraqi dinars, where we launched a huge advertising campaign for marketing this service, and we won the award of the best bank in this product. The issue of settling salaries has been one of our priorities since the start of the project, and we are the number 2 among the private banks in Iraq in terms of the number of employees who have managed to settle our salaries to us, which amounted to about 13,000 people from 20 ministries or companies affiliated with them. We try to create products and incentives for those people whose salaries have been settled, for example giving loans up to $ 9,000 without a sponsor, or 30.

What do you think is the importance of financial technology in the development of banking, and how do you describe the experience of the Iraqi National Bank in this area?

We have allocated about $ 15 million to invest in the development of the bank's infrastructure to keep abreast of the best and latest global systems in the field of financial technology. Since the beginning of the year, we have moved the Data Center from Jordan to Baghdad, one of the most modern information centers in Iraq. We have also developed online services through which any person or company can view his accounts, make the necessary adjustments and ensure that all transactions performed on his account are correct and sound, which gives our customers greater confidence in the transparency of our services.

Also on E-Channels, we have 3 important projects:

E-Wallet: A person who has a local salary can carry his salary on the E-Wallet application on his smartphone and withdraw it from any of the 3000 Cash Out Center in Iraq belonging to Zain. Iraq depends on this service.
Micro Finance: Between $ 200 and $ 500, where a person fills out his application through a special application on the mobile phone, and the approval comes if he has the necessary conditions.
Online Service Platform: Our customers can open credits, transfer funds, and transfer salaries.

What are the most important challenges facing the banking sector in Iraq, and how could the Iraqi National Bank overcome them?

Many banks have faced major defaults and liquidity problems in recent years, forcing the central bank to put some of them under guardianship. As a result of this situation, people's confidence in private banks was shaken and they preferred to keep their money in their homes or in government banks. There was a big challenge in attracting deposits to private banks. Today, the central bank is working to establish a bank deposit guarantee institution that will give greater confidence to the public and guarantee their deposits.
As part of Jordan's Capital Bank, which has 62% of our capital, we are trying to give people confidence in our business acumen and that our financial indicators are strong and our liquidity is high.

On the other hand, we see the opening of a large number of new banks, does not this process negatively affect the efforts to develop the private banking sector and improve its image?

There is criticism of the process of granting licenses to a large number of banking companies to convert them to Islamic banks, and in the opinion that they are not qualified to practice banking. The issue is also a major burden on the central bank to monitor them. Any failure of these emerging banks will frustrate all our endeavors to restore confidence in the banking sector, and we hope the Central Bank to reconsider this issue and stresses that these banks to merge with each other.

Do you think it is necessary to raise the capital of Iraqi banks to urge them to merge?

The minimum capital of Iraqi banks is 250 billion dinars ($ 210 million). If the aim of lifting the pressure on banks to encourage them to merge and reduce the number of banks operating in the market, it is possible. If we take the issue neutrally, the minimum capital is good and even high in Iraq, where deposits do not exceed 3 times this amount, while deposits in international banks up to 7 times the capital.

How do you evaluate the experience of foreign banks operating in Iraq?

There is no doubt that foreign banks or their branches have increased the experience of local banks. As an Iraqi bank that has a partnership with Jordan's Capital Bank, we seek to be distinguished by service and products. This is a competitive element with other banks, which are supposed to develop their business as well, all of which ultimately benefit the citizen and the Iraqi economy.

What are your future projects?

In late 2018, we recognized our new strategy. One of the most important features of this strategy is to increase growth and achieve continuous and increasing profits, in addition to establishing a new headquarters, opening three new branches and renovating all old branches. We have a great interest in the areas of Mosul and Ramadi so that we can contribute to reconstruction.

https://www.nbi.iq/ar/news/%D9%85%D9%82%D8%A7%D8%A8%D9%84%D8%A9-%D8%A7%D9%84%D8%B3%D9%8A%D8%AF-%D8%A3%D9%8A%D9%85%D9%86-%D8%A3%D8%A8%D9%88%D8%AF%D9%87%D9%8A%D9%85-%D8%A7%D9%84%D9%85%D8%AF%D9%8A%D8%B1-%D8%A7%D9%84%D9%85%D9%81%D9%88%D8%B6-%D9%81%D9%8A-%D9%85%D8%AC%D9%84%D8%A9-%D8%B9%D8%A7%D9%84%D9%85-%D8%A7%D9%84%D9%85%D8%B5%D8%A7%D8%B1%D9%81-%D8%A7%D9%84%D8%B9%D8%AF%D8%AF-%D8%B1%D9%82%D9%85-55-%D9%86%D9%8A%D8%B3%D8%A7%D9%86%D8%A3%D9%8A%D8%A7%D8%B1-2019