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The reality of private banks in Iraq
Ahmed Hamid Alhmal
Saturday, 27 December 2014 00:00
To be the definition of private banks so that we stand on the main functions? Do you practice these jobs actually on the ground?
Ahli bank, is a financial institution aims to facilitate financial transactions for customers and save the money and run.
We find this definition contains three basic pillars: to facilitate transactions, and save money, and operation of financial aid, the banking business in Iraq is found away from those three functions a lot, because facilitate commercial transactions very worsening compared to banks in neighboring countries at least.
And save money in private banks do not find a significant effect due to turn away customers for the provision of their money in these banks because they are characterized by a lack of transparency and clarity as well as low-interest bank rate given by the bank deposit, and other reasons may be deteriorating security situation one of the main reasons for saving money.
The third pillar and the task is to run the money, since the most important functions of the Commercial Bank is the money deposited to run to him, because he is a mediator financially between the lender and the borrower, it is assumed that the bank invested the money and run it in a way serving the national economy, so it is through the above explanation The theoretical side of the bank and how to work in an integrated say:
Can the private banks can play an important role in the revitalization of the national economy through multi their tools, and most important of these tools are long-term loans, and the loans are considered tributary important to invest the money, so we find that the interest rate on loans in Iraq, low foreign investor, and thus away the bank for this Position gradually depending on the preference of the foreign investor to run his money abroad, and one of the elements of the national economy is said to be the role of an integrated private banks in all respects, ie, must take its role in idle funds invest optimally, but if we look at the reality of banking in Iraq found lagging in most aspects and limited role in the adoption of the currency auction posed by the central bank a day for these banks in the hope that the National Bank sold dollars every citizen $ 5000, but these banks have moved away from this post and took sell the dollar on the black market to reap from the profits of illegitimate in the eyes of the law committed these banks!
Also, private banks have tended to Murabaha factor, a condition contracted bank whereby the investor to buy certain goods or services based on the client's request, and the bank sells it to the customer at a price of which provide funding by the bank and the good ingredients for the investor and the market, but they do not meet ambitious national economy, for example, the sale of vehicles that are processed own companies for the bank to guarantee the payment of the amounts in the form of monthly Aqsad and specific periods.
In conclusion, I say there must be a real control over the work of banks, which reached a population of 48 regional banks, and we have to the Iraqi Central Bank is working on a trusteeship on each bank contrary to his instructions as banks Bank, and the highest authority in the banking system, because the work of these banks very rarely in support of the national economy (and rare Kalmtm), so sought by the new administration of the Central Bank to tighten control over every action violates the CBI laws and to prevent banks that violate the bank instructions in regards to currency auction, because the money earned by these banks a day through gaps auction currency worth millions of dinars, and that these banks became the only concern is profit earned from the auction currency posed by the central bank, and moved away completely from the important factor which investment banking, so I would suggest two important points I put in the hands of the Iraqi Central Bank Management:
First, the obscure share of private banks for foreign currency auction, and are transparent and clearly dollar selling through auction to the bank every day and every dollar wants to buy from exclusively Bank, to get rid of occurring fluctuations between the dollar and the dinar and thereby preserving their national currency.
Second, the central bank to sell part of its currency auction the Ministry of Finance, which in turn converts this part of the dollar jointly with the Iraqi dinar to employees and retirees of the state, and thus get rid of an important factor affecting the living standards of the Iraqi people, a general level of prices rising as a result of the high value of the dollar against the dinar.
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Ahmed Hamid Alhmal
Saturday, 27 December 2014 00:00
To be the definition of private banks so that we stand on the main functions? Do you practice these jobs actually on the ground?
Ahli bank, is a financial institution aims to facilitate financial transactions for customers and save the money and run.
We find this definition contains three basic pillars: to facilitate transactions, and save money, and operation of financial aid, the banking business in Iraq is found away from those three functions a lot, because facilitate commercial transactions very worsening compared to banks in neighboring countries at least.
And save money in private banks do not find a significant effect due to turn away customers for the provision of their money in these banks because they are characterized by a lack of transparency and clarity as well as low-interest bank rate given by the bank deposit, and other reasons may be deteriorating security situation one of the main reasons for saving money.
The third pillar and the task is to run the money, since the most important functions of the Commercial Bank is the money deposited to run to him, because he is a mediator financially between the lender and the borrower, it is assumed that the bank invested the money and run it in a way serving the national economy, so it is through the above explanation The theoretical side of the bank and how to work in an integrated say:
Can the private banks can play an important role in the revitalization of the national economy through multi their tools, and most important of these tools are long-term loans, and the loans are considered tributary important to invest the money, so we find that the interest rate on loans in Iraq, low foreign investor, and thus away the bank for this Position gradually depending on the preference of the foreign investor to run his money abroad, and one of the elements of the national economy is said to be the role of an integrated private banks in all respects, ie, must take its role in idle funds invest optimally, but if we look at the reality of banking in Iraq found lagging in most aspects and limited role in the adoption of the currency auction posed by the central bank a day for these banks in the hope that the National Bank sold dollars every citizen $ 5000, but these banks have moved away from this post and took sell the dollar on the black market to reap from the profits of illegitimate in the eyes of the law committed these banks!
Also, private banks have tended to Murabaha factor, a condition contracted bank whereby the investor to buy certain goods or services based on the client's request, and the bank sells it to the customer at a price of which provide funding by the bank and the good ingredients for the investor and the market, but they do not meet ambitious national economy, for example, the sale of vehicles that are processed own companies for the bank to guarantee the payment of the amounts in the form of monthly Aqsad and specific periods.
In conclusion, I say there must be a real control over the work of banks, which reached a population of 48 regional banks, and we have to the Iraqi Central Bank is working on a trusteeship on each bank contrary to his instructions as banks Bank, and the highest authority in the banking system, because the work of these banks very rarely in support of the national economy (and rare Kalmtm), so sought by the new administration of the Central Bank to tighten control over every action violates the CBI laws and to prevent banks that violate the bank instructions in regards to currency auction, because the money earned by these banks a day through gaps auction currency worth millions of dinars, and that these banks became the only concern is profit earned from the auction currency posed by the central bank, and moved away completely from the important factor which investment banking, so I would suggest two important points I put in the hands of the Iraqi Central Bank Management:
First, the obscure share of private banks for foreign currency auction, and are transparent and clearly dollar selling through auction to the bank every day and every dollar wants to buy from exclusively Bank, to get rid of occurring fluctuations between the dollar and the dinar and thereby preserving their national currency.
Second, the central bank to sell part of its currency auction the Ministry of Finance, which in turn converts this part of the dollar jointly with the Iraqi dinar to employees and retirees of the state, and thus get rid of an important factor affecting the living standards of the Iraqi people, a general level of prices rising as a result of the high value of the dollar against the dinar.
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