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Baghdad: banks calls for the cancellation ceiling of bank credit
12/4/2011
The Chairman of the Board of Directors «North Bank for Finance and Investment» Nawzad David Fattah, dry, to broaden the base of government support for the Iraqi private banking sector, through bank credits granted to them without reference to a specified ceiling. He noted that this support will contribute to the development of activity in the sector to become more effective.
The dry statement to «life»: «sector welcomes the decision of raising the ceiling of bank credit to four million dollars, but he would not be feasible for the private Iraqi banks active in the area of finance and lending, in its quest to secure the requirements of project funding, as the post the private banking sector in financing development projects seem very limited and shall not exceed three percent, according to estimates by concerned ».
He explained that the failure to determine the value of funds to private banks would support the infrastructure sector banking in ways that enhance opportunities for increasing its relationship to foreign trade, and make it more interactive and able to meet the exceptional circumstances experienced by the country, which is one of the most prominent challenges facing the economic sectors.
He stressed dry on the need to «the development of standards for banks that meet the requirements for coverage of open letters of credit it, and a performance sober, accuracy and speed in delivery, and the level of confidence of customers and the amount of capital and its commitment to international standards, which confirms the Central Bank of Iraq need to adhere to the terms of prevention against corruption and poor management and transparency, in addition to the set of values set by the Basel Committee on Banking Supervision ».
He pointed out that the Iraqi banking sector is expected to testify in the coming years changes the quality of the investment climate, in the light of the increasing income of the financial resources after the increase of oil exports and raise the prices of oil, which requires the willingness of banks to raise the proportion of its dealings banking at all levels, and therefore emphasize the importance of the launch of bank credit and not identified a specific ceiling.
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