Bankers: Reform requires the confidence of the private banks

by **Ponee** Wed Jan 29, 2014 8:58 am

Bankers: Reform requires the confidence of the pirivate banks

1/28/2014 0:00

Examined the ways of development of the sector and its products
Baghdad - Shkran Fatlawi student bankers to expedite the reform of the banking reality and give the private sector banks more confidence and interest, arguing the need to get out of this crisis came during a seminar expanded hosted by the Institute for the progress of policy development during which discuss the crisis, the banking system in Iraq and ways out of this crisis. president of the Institute for the progress of development policies d. Mehdi al-Hafez accept it at the beginning of the seminar a number of important points indicating the importance and visibility of economic integrated to address the problems of economic life for all sectors, including the banking sector. creating a middle class Hafiz stressed that the future of Iraq promised is directly linked to the creation of a growing middle class and economic reform and monetary and financial and reconsider all practices Traditional weakened economic vitality and strength driving Kalmward financial and other. fact the banking adviser of the World Bank to restructure the Iraqi banks, an economist Majid picture talked about the reality of the Iraqi banking sector and the big problems that afflict pointing out that the banking system is made up of 54 banks, including seven state banks, one of them an Islamic newly established and there are 23 commercial banks, a special 9 of which Islamic banks as well as having 15 branches of foreign banks not to mention the many institutions that do some banking, including 34 companies transform Mali, about 200 companies banking subsidiaries of banks or dealing with banks or with the company to secure loans and finance company small and medium enterprises with the two companies for banking services and electronic smart card, as well as about 800 branch belonging to the banks and distributed among all of Iraq's provinces. legacy and attributed the picture deterioration of the banking reality to the heavy legacy inherited by Iraq and led to the collapse of the Iraqi economy and the failure of the banking system as a result of war and siege, militarization and entangle banks government relations internal and external complex led to the obvious weakness in the banking culture and the decline of international confidence and the decline of the role of banks in economic activity and development. banking reform Suri gave a vision of a brief to reform the banking through the restructuring of State-owned banks (Rafidain and Rasheed) and specialized banks and credit controls in the central bank pointing to the need for the reform process and to develop regulations appropriate based on the Basel.restructuring of the banking system and added the picture that in 2006 signed a Memorandum of Understanding between the Ministry of Finance and the Central Bank of Iraq under the auspices of the International Monetary Fund and the World Bank and the U.S. Treasury to achieve a restructuring program of the banking system in Iraq pursuant to a the terms of reference between Iraq and the International Monetary Fund relating to the restructuring of the Iraqi state institutions included the revision of the organizational structure and diagnose problems of financial, operational and regulatory faced by all government banks. governance Suri pointed to the importance of achieving everything related to the principles of good governance and the issuance of regulations appropriate by the Bank Central to the organization of the work of government and private banks.between the importance of reconsidering the laws related as well as activating the role of the central bank in monitoring and supervising the work of banks without distinguishing between public and private, noting that this requires the establishment of Higher Supervisory Committee to oversee the achievement of the restructuring of banks consisting of the Governor Central Bank and the Finance Minister and Chairman of the Audit Court. the international banking industry and the picture that the aim of the restructuring is to strengthen the internal construction of the banks and work on the foundations of good governance and upgraded to the level of the international banking industry and activating the role of banks in economic activity and the process of economic development as well as the development and consolidation of international relations Iraqi banks. stressed the need to develop banking culture and change the methodology of thinking of employees in the banking industry in Iraq. drew the picture that all the studies submitted by the consultants confirmed that it can not achieve the principles of good governance and the control and supervision of the immediate and precautionary by the banks and the supervisory authority, but using the banking system overall. restructuringand said that the achievement of the restructuring of the banking system in general, both governmental and private requires procedures and continuous follow-up, pointing to the need for legal reform of the banking sector , noting that it will lead to improving the performance of Iraqi banks and improve the reputation of local and global noting that it will not work on activating the economic role unless it is make the necessary adjustments in the Banking Act that are consistent with the requirements of the Iraqi economy is growing. distinguish between targets and called at the conclusion of his speech to the need to distinguish between the activity of banks on the basis of the goals established for it, and to identify areas of work in accordance with the requirements of the stage on the basis of commercial banks are actively banker and investment banks determined work in the field of investment, and Islamic banks operate according to Islamic law and the banks developmental work within the objectives of the economic policy of the state in the areas of productivity, in particular such as industry and agriculture. Dr. Mehdi al-Hafez said at the conclusion of the meeting the importance of developing and expanding research in economic and financial issues and start the adoption of an integrated program for the pointing That's what that seeks him "the progress of the Institute of Policy Development" in the future.