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Font Size:06/04/2013 (00:01 pm) - The number of readings: 39 - Issue (2767)
Foreign banks considering opening branches in the country
Translation: Abdul Khaliq Ali
: The New York Times
Iraq is still struggling to overcome the economic effects of the war and armed actions and political rifts and the fragile security situation. For its emerging banking sector, the challenges do not stop at this point. According to the official website of the Central Bank of Iraq, there are seven state-owned banks in the country and 32 banks waged, and 15 foreign banks, but analysts say there is a section of government banks - especially Rafidain and Rasheed - controls 90% of the banking business. Says Bassem Al-Salem Al-Executive Director of Bank Alcapittal Ahli in Jordan, which owns 72% of National Bank of Iraq, "the fact that public banks have been given the opportunity to benefit from the funds of the public sector huge, it is natural to be marginalized private banks Iraqi, resulting in a loss of consumer confidence, who fear of the possible collapse of the private banks, what is a big challenge for the growth of the private banks. " On the other hand says supporter Makhlouf Regional Director of Operations Middle East and North Africa of the International Finance Corporation in Dubai (World Bank Unit, which oversees the private sector), "There is no equal opportunities in Iraq because most agencies and state-owned companies - and employees - constrained in its dealings with private banks and deal only with public banks. As a result, the private sector - consisting of almost 40 banks - a very small and limited his activity in the field of loans. "
Because banks access to public funds, the capital good, but private banks, it must struggle to get deals in infrastructure competition protector in the construction and manufacturing sectors.
And increasing in difficulty, the central bank has introduced two years ago, a law that defines the minimum capital requirements for all Iraqi banks at $ 215 million, will be implemented in June of this year. Says Tawfik temperament co-director of the company ايفرشيدز of international law "there is a big issue concerning capital adequacy in private banks and request the Central Bank to increase capital gradually, likely that there will be integrating large among these banks, and possibly close some banks open, and may banks merge or buy other banks. "
If we add to that the costs of the application of risk management and anti-money laundering measures and the difficulty of running Al Ahli Bank in Iraq, the task seems too strenuous. However, has expressed several foreign banks in recent willingness to enter the banking market in Iraq and pursuing project financing opportunities in the country has a lot of untapped potential. Among these banks, Standard Chatrd Bank, which gets 90% of its profits and revenues from the provision of services wholesale consumer banking in Asia, Africa and the Middle East. In the last steps, the bank plans to open three offices in Iraq. This bank has a representative office in the northern Iraqi city of Arbil.
In order to expand the activities of its customers within Iraq, the bank introduced this year a request to the Central Bank of Iraq to obtain licenses in order to expand his office in Erbil to branch full and to open an office in Baghdad, followed by another branch in southern city of Basra in 2014. The bank also plans to appoint an executive director in Baghdad to oversee its work in Iraq.
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