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Samir Abbas Alnasiri *: the proposed core pillars of the upcoming five-year plan of the Central Bank of Iraq
- PUBLISHED IN 08/07/2015
Download PDF that the Iraqi banking sector for more than twelve years and up to the present time practicing policies and mechanisms troubled regulated by experimental and can be considered a transitional period is still ongoing in order to build a ...
Download PDF
The Iraqi banking sector for more than twelve years and up to the present time practicing policies and mechanisms troubled regulated by experimental and can be considered a transitional period is still ongoing in order to build experience An Iraqi intact in identifying foundations and pillars of the national economic construction depends fiscal policy applications and cash Ekhalqat essential and important in this construction, led by Central Bank of Iraq as the first charge as stated in the law (56 of 2004) for the supervision and control of the banking system and run it according to its means in politics applications of cash and its impact on the overall economy on the grounds that the financial and monetary adviser to the government in addition to his duties basic to maintain Aldenarabraghi exchange rate Currency and foreign construction foreign cash reserves and the reduction of inflation, but unfortunately, they march you to the elements essential for the maturation of the application and government support and strategic systematic depending on the study and analysis of the reality of the Iraqi economy, rent-seeking, which relies on a basic resource and one is oil, which is up to (54-60 %) of the gross domestic product, and the lack of coordination between fiscal and monetary policies and different economic policies, according to the new building of the economy has contributed significantly to the fragmentation of applications in monetary policy and the different visions and strategies to reach the central objectives identified in addition to the deficiencies in some of the legislative environment materials of economic laws regulate the economic process which led to disorder in the application and to rely on militancy and interpretations and instructions unclear which does not correspond with the political, economic and security conditions experienced by Iraq . In addition, the laws above and in particular some of the relevant investment materials and the relationship with the Iraqi banking sector was inhibiting new construction of the economy and not help add to the adoption of all budgets annual general on the expected production and marketing of oil revenues without that there will be a look Future of the Iraqi economy in line with the possibilities and capabilities and capacities physical, human and structural and institutional as well as central past policies in the supervision and control over the private banking sector and not give him elasticities Legal to conduct its funding and investment, which constitutes (48) commercial and Islamic banks and branches of banks, foreign and Arab Compared with (7) state banks account for (86%) of the Private deposits and Government and a capital does not exceed its importance relative (23%) compared with the total capital of private banks which indicate financial indicators for 2014 to Mayati: -
Total Assets
225 trillion dinars (204) trillion dinars to the Government banks, (21) trillion dinars to the private banks
Total capital
9 trillion dinars Of which 7 trillion dinars to the private banks, and (2) trillion dinars to the Government and banks make up 23% of the total capital
Total deposits
75 trillion dinars (86%) with the Government of banks, (14%) with private banks
Which led to the failure of this sector in turn contribute to the economic development and contribute to the diversification and development of other resources other than oil, a central goal of the Central Bank of Iraq as the influential and the expeditious thing that made us usher good government program of the new government and in particular the false axis Thirdly and private encouraging the shift to the private sector and para. (d) thereof which define pathways and mechanisms for public business development banking, which is definitely need to make great efforts of relevant government agencies with the government banking and the private sector for the diagnosis of the current economic situation and overcome the challenges and obstacles to the reform and development of the Iraqi banking sector and propose the foundations and strategies of the actors to build introductions and Features the transition from the banking to the developmental role through the process all the mistakes and lapses in economic construction during the four years coming with identifying paths of success and achieve the goals, according to the runway in the government program, and after years after the life of the government note as far as the sector of the Iraqi banking something important has been achieved than led the Central Bank of Iraq and as declared by the Governor in a particular banking seminars which was led during the last month that the Iraqi Central Bank is currently working on the preparation of his plan for the five years to come in order to lay the foundations of sound upgrade the Policy Forum and monetary development and support of the Iraqi banking sector a manner that achieves the false government program.
For the purpose of the contribution of the experts, economists and bankers in the public and private sector in the mature ideas and visions to achieve that we put in front of the governor proposed core pillars to prepare the upcoming five-year plan of the Central Bank of Iraq, as follows: -
Basic pillars of the proposed five-year plan
First: - establishment of banking reform Council
We propose the formation of this Council of: -
Governor of the Central Bank of Iraq
Adviser for Finance and Monetary Mr. Prime Minister
Representative of the parliamentary Finance Committee
Government representative banks
Representative of the Iraqi private banks (Association of Iraqi private banks)
Experts from the private banking sector number (2) in the monetary policy and fiscal policy
An expert in macroeconomics from the College of Management and Economics / University of Baghdad
The Council: -
Study and analysis of the reality of the banking business in Iraq and the challenges it faces.
Operational policies and the restructuring of government banks drawing according to the study and the note signed with the World Bank earlier and take advantage of its expertise in this area.
Find ways to implement the executive stated in the government program with respect to the banking sector and set a time for the ceilings with a program of follow-up, monitoring and evaluation
Strengthening the role of Proactive control to limit money laundering and smuggling
Develop a plan to address proactive Capital collapses suffered by some private sector banks because of the current circumstances to overcome while after the improvement of the financial situation of the country and the stability of world oil prices
Develop programs and policies of the continuous cooperation between the government and private banks with the unification of the transaction for both parties
Setting new standards for the classification and evaluation of banks in the light of financial indicators and to measure the efficiency of its performance and its role in contributing to development and economic
Support and activation and development of the Iraqi Central Bank initiative to allocate 5 trillion dinars to banks or specialized (housing, agricultural, industrial) and (1) trillion dinars to finance small businesses, medium and create new job opportunities and contribute to the economic and social development plans
Application adhere to the standards World Banking measures including standard capital adequacy and financial disclosure for banks' financial statements
Encourage banks to set up Stadiq joint investment in order to expand the opportunities available to them for the implementation of major projects
Second: - legislative environment
Restore and modify legislative environment laws governing the banking business and in particular to address the challenges faced by banks on the subject of contributing to the investment, with a focus on the central bank laws (56 of 2004) and banks (94 of 2004), money laundering (93 of 2004) and the issuance of Islamic Banking Act and the issuance of the Deposit Insurance Law and the law of the financing of small and medium enterprises.
Third: - activate the borrowing market
Activate Helms paragraphs government program and in particular Mai_khas activate lending between the central bank and inter-bank market as well as between banks and activating the role of government banks and specialized banks and private banks to provide soft loans to the private sector and the national as well as finding solutions to the problems of tax accumulated and benefits resulting from the stalled projects for production and put the owners of Solutions short and medium-term fiscal policy and activating the role of reserve requirements as a tool essential for liquidity management.
Fourth: -alsaesten fiscal and monetary
Coordination between fiscal policy and cash according to the specific contexts and central mechanisms and the desired objective Hobina a new model of the national economy will be.
Fifth: - cooperation with the government
Contribute with the government as a financial consultant and cash in the transition from a rentier economy to a multi-resource economy and to the re-distribution of national income, according to the directives of the market economy.
Sixth: - Structural banking sector
Adoption of new monetary policy and financial lead to comprehensive reform and restructuring of the financial and banking sector of Iraq with an emphasis on restructuring the government banking sector according to what you stated the memorandum signed with the World Bank and the support of the private banking sector and enhance its capabilities for current that without a sound banking sector can not build a sound national economy.
Seventh: - the total credit and finance
Working to increase the credit product and funding from private banks and activate their contribution to various aspects of the reconstruction investment, and advancing the process of development, and move the economic cycle in Iraq, we see serious as an essential step is to start to maximize the financing of small and medium-sized private enterprises, target social and economic is of particular and urgent priority. And develop and promote the financing of small and medium enterprises .
Eighth: - financing and development of small and medium-sized enterprises
The activation of the government's role in building a strategy for the development of small and medium enterprises is the most important elements of success as the government that has the financial possibilities in a yield economy in which the private sector weakens to a large degree and can not promote this sector without having a plan for the development of this sector and build a clear and declared mechanisms involving the private sector so that it can effectively be transformed from a small government sector continued to key partner and then to the commander in investment and construction operations .
Ninth: -alrkabh proactive
Activating Proactive control and review the instructions and implementing regulations and extension on the applications of monetary policy and a precise regulatory system for monitoring implementation, and in particular that concerns foreign exchange Auctions Currency and supervised by the Central Bank of Iraq without interfering with the independence as referred to by law.
Tenth: - Information Technology
Complete the special procedures of information technology system and the system of payments and national divider and operational projects for the development of other modern banking business .
Eleven: - transparency of financial statements and disclosure
The development of the scope and quality of the data of monetary and financial with banks, with an emphasis on disclosure and transparency, the development departments of Statistics and research in all banks will organize and prepare the data and deliver it to the competent authorities in the Iraqi Central Bank on the dates specified departments in order to take advantage of the indicators in forecasting and analysis and decision -making centralization necessary for the reform and development of sector Iraqi banking .
Twelve: - Human Resources Development
Human Resources Development Banking means the adoption of modern training, rehabilitation and development capacity and expertise career niche.
Thirteen: - International Accounting Standards
The adoption of accounting standards and international standard and Maasdr for international banking organizations related to the global economy and try to take advantage of it in the development and reform the banking operations.
Fourteen: - administrative and technical CBI structure
A review of the organizational structure of the technical and administrative Central Bank of Iraq and in particular that concerns the development of work in departments control and oversight of banking and money laundering Bmainsjm with the new law report to the Council of Representatives of Iraq now and the introduction of a circle to support and develop the private banking sector.
(*) Researcher and economist, 27/07/2015
Copyright network of Iraqi economists. Permission to quote and re-publication, provided that the source
[You must be registered and logged in to see this link.] /
- PUBLISHED IN 08/07/2015
Download PDF that the Iraqi banking sector for more than twelve years and up to the present time practicing policies and mechanisms troubled regulated by experimental and can be considered a transitional period is still ongoing in order to build a ...
Download PDF
The Iraqi banking sector for more than twelve years and up to the present time practicing policies and mechanisms troubled regulated by experimental and can be considered a transitional period is still ongoing in order to build experience An Iraqi intact in identifying foundations and pillars of the national economic construction depends fiscal policy applications and cash Ekhalqat essential and important in this construction, led by Central Bank of Iraq as the first charge as stated in the law (56 of 2004) for the supervision and control of the banking system and run it according to its means in politics applications of cash and its impact on the overall economy on the grounds that the financial and monetary adviser to the government in addition to his duties basic to maintain Aldenarabraghi exchange rate Currency and foreign construction foreign cash reserves and the reduction of inflation, but unfortunately, they march you to the elements essential for the maturation of the application and government support and strategic systematic depending on the study and analysis of the reality of the Iraqi economy, rent-seeking, which relies on a basic resource and one is oil, which is up to (54-60 %) of the gross domestic product, and the lack of coordination between fiscal and monetary policies and different economic policies, according to the new building of the economy has contributed significantly to the fragmentation of applications in monetary policy and the different visions and strategies to reach the central objectives identified in addition to the deficiencies in some of the legislative environment materials of economic laws regulate the economic process which led to disorder in the application and to rely on militancy and interpretations and instructions unclear which does not correspond with the political, economic and security conditions experienced by Iraq . In addition, the laws above and in particular some of the relevant investment materials and the relationship with the Iraqi banking sector was inhibiting new construction of the economy and not help add to the adoption of all budgets annual general on the expected production and marketing of oil revenues without that there will be a look Future of the Iraqi economy in line with the possibilities and capabilities and capacities physical, human and structural and institutional as well as central past policies in the supervision and control over the private banking sector and not give him elasticities Legal to conduct its funding and investment, which constitutes (48) commercial and Islamic banks and branches of banks, foreign and Arab Compared with (7) state banks account for (86%) of the Private deposits and Government and a capital does not exceed its importance relative (23%) compared with the total capital of private banks which indicate financial indicators for 2014 to Mayati: -
Total Assets
225 trillion dinars (204) trillion dinars to the Government banks, (21) trillion dinars to the private banks
Total capital
9 trillion dinars Of which 7 trillion dinars to the private banks, and (2) trillion dinars to the Government and banks make up 23% of the total capital
Total deposits
75 trillion dinars (86%) with the Government of banks, (14%) with private banks
Which led to the failure of this sector in turn contribute to the economic development and contribute to the diversification and development of other resources other than oil, a central goal of the Central Bank of Iraq as the influential and the expeditious thing that made us usher good government program of the new government and in particular the false axis Thirdly and private encouraging the shift to the private sector and para. (d) thereof which define pathways and mechanisms for public business development banking, which is definitely need to make great efforts of relevant government agencies with the government banking and the private sector for the diagnosis of the current economic situation and overcome the challenges and obstacles to the reform and development of the Iraqi banking sector and propose the foundations and strategies of the actors to build introductions and Features the transition from the banking to the developmental role through the process all the mistakes and lapses in economic construction during the four years coming with identifying paths of success and achieve the goals, according to the runway in the government program, and after years after the life of the government note as far as the sector of the Iraqi banking something important has been achieved than led the Central Bank of Iraq and as declared by the Governor in a particular banking seminars which was led during the last month that the Iraqi Central Bank is currently working on the preparation of his plan for the five years to come in order to lay the foundations of sound upgrade the Policy Forum and monetary development and support of the Iraqi banking sector a manner that achieves the false government program.
For the purpose of the contribution of the experts, economists and bankers in the public and private sector in the mature ideas and visions to achieve that we put in front of the governor proposed core pillars to prepare the upcoming five-year plan of the Central Bank of Iraq, as follows: -
Basic pillars of the proposed five-year plan
First: - establishment of banking reform Council
We propose the formation of this Council of: -
Governor of the Central Bank of Iraq
Adviser for Finance and Monetary Mr. Prime Minister
Representative of the parliamentary Finance Committee
Government representative banks
Representative of the Iraqi private banks (Association of Iraqi private banks)
Experts from the private banking sector number (2) in the monetary policy and fiscal policy
An expert in macroeconomics from the College of Management and Economics / University of Baghdad
The Council: -
Study and analysis of the reality of the banking business in Iraq and the challenges it faces.
Operational policies and the restructuring of government banks drawing according to the study and the note signed with the World Bank earlier and take advantage of its expertise in this area.
Find ways to implement the executive stated in the government program with respect to the banking sector and set a time for the ceilings with a program of follow-up, monitoring and evaluation
Strengthening the role of Proactive control to limit money laundering and smuggling
Develop a plan to address proactive Capital collapses suffered by some private sector banks because of the current circumstances to overcome while after the improvement of the financial situation of the country and the stability of world oil prices
Develop programs and policies of the continuous cooperation between the government and private banks with the unification of the transaction for both parties
Setting new standards for the classification and evaluation of banks in the light of financial indicators and to measure the efficiency of its performance and its role in contributing to development and economic
Support and activation and development of the Iraqi Central Bank initiative to allocate 5 trillion dinars to banks or specialized (housing, agricultural, industrial) and (1) trillion dinars to finance small businesses, medium and create new job opportunities and contribute to the economic and social development plans
Application adhere to the standards World Banking measures including standard capital adequacy and financial disclosure for banks' financial statements
Encourage banks to set up Stadiq joint investment in order to expand the opportunities available to them for the implementation of major projects
Second: - legislative environment
Restore and modify legislative environment laws governing the banking business and in particular to address the challenges faced by banks on the subject of contributing to the investment, with a focus on the central bank laws (56 of 2004) and banks (94 of 2004), money laundering (93 of 2004) and the issuance of Islamic Banking Act and the issuance of the Deposit Insurance Law and the law of the financing of small and medium enterprises.
Third: - activate the borrowing market
Activate Helms paragraphs government program and in particular Mai_khas activate lending between the central bank and inter-bank market as well as between banks and activating the role of government banks and specialized banks and private banks to provide soft loans to the private sector and the national as well as finding solutions to the problems of tax accumulated and benefits resulting from the stalled projects for production and put the owners of Solutions short and medium-term fiscal policy and activating the role of reserve requirements as a tool essential for liquidity management.
Fourth: -alsaesten fiscal and monetary
Coordination between fiscal policy and cash according to the specific contexts and central mechanisms and the desired objective Hobina a new model of the national economy will be.
Fifth: - cooperation with the government
Contribute with the government as a financial consultant and cash in the transition from a rentier economy to a multi-resource economy and to the re-distribution of national income, according to the directives of the market economy.
Sixth: - Structural banking sector
Adoption of new monetary policy and financial lead to comprehensive reform and restructuring of the financial and banking sector of Iraq with an emphasis on restructuring the government banking sector according to what you stated the memorandum signed with the World Bank and the support of the private banking sector and enhance its capabilities for current that without a sound banking sector can not build a sound national economy.
Seventh: - the total credit and finance
Working to increase the credit product and funding from private banks and activate their contribution to various aspects of the reconstruction investment, and advancing the process of development, and move the economic cycle in Iraq, we see serious as an essential step is to start to maximize the financing of small and medium-sized private enterprises, target social and economic is of particular and urgent priority. And develop and promote the financing of small and medium enterprises .
Eighth: - financing and development of small and medium-sized enterprises
The activation of the government's role in building a strategy for the development of small and medium enterprises is the most important elements of success as the government that has the financial possibilities in a yield economy in which the private sector weakens to a large degree and can not promote this sector without having a plan for the development of this sector and build a clear and declared mechanisms involving the private sector so that it can effectively be transformed from a small government sector continued to key partner and then to the commander in investment and construction operations .
Ninth: -alrkabh proactive
Activating Proactive control and review the instructions and implementing regulations and extension on the applications of monetary policy and a precise regulatory system for monitoring implementation, and in particular that concerns foreign exchange Auctions Currency and supervised by the Central Bank of Iraq without interfering with the independence as referred to by law.
Tenth: - Information Technology
Complete the special procedures of information technology system and the system of payments and national divider and operational projects for the development of other modern banking business .
Eleven: - transparency of financial statements and disclosure
The development of the scope and quality of the data of monetary and financial with banks, with an emphasis on disclosure and transparency, the development departments of Statistics and research in all banks will organize and prepare the data and deliver it to the competent authorities in the Iraqi Central Bank on the dates specified departments in order to take advantage of the indicators in forecasting and analysis and decision -making centralization necessary for the reform and development of sector Iraqi banking .
Twelve: - Human Resources Development
Human Resources Development Banking means the adoption of modern training, rehabilitation and development capacity and expertise career niche.
Thirteen: - International Accounting Standards
The adoption of accounting standards and international standard and Maasdr for international banking organizations related to the global economy and try to take advantage of it in the development and reform the banking operations.
Fourteen: - administrative and technical CBI structure
A review of the organizational structure of the technical and administrative Central Bank of Iraq and in particular that concerns the development of work in departments control and oversight of banking and money laundering Bmainsjm with the new law report to the Council of Representatives of Iraq now and the introduction of a circle to support and develop the private banking sector.
(*) Researcher and economist, 27/07/2015
Copyright network of Iraqi economists. Permission to quote and re-publication, provided that the source
[You must be registered and logged in to see this link.] /
