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Wondered about the reasons for the failure to extend the government banks decision
Baghdad - Mostafa Hashemi - * شكران Fatlawi
saw experts and specialists in economic affairs that the central bank's decision excluding the 12 banks waged from the auction currency and deprive it of cash sales, transfers and appropriations would open the door to the parallel market to emerge and retreat of the real role of banks civil serious in the search for a banking partnership with the world's largest banks. While others questioned about the reason for increasing the capital of private banks and the lack of increase in the counterpart government despite the fact that the majority of government banks to exceed its capital of 100 billion dinars.
discrimination in dealing
In this regard, said economic expert, Dr. Majid picture that there is discrimination in dealings between private banks and government through the consolidation of non- confidence in the banking industry to the private sector, and explained that there are state banks less capital much about 250 billion Iraqi dinars.
between the Rafidain Bank, capitalized at 70 billion dinars with the reserve while the capital Rasheed Bank of 25 billion dinars, in addition to some banks other government not to exceed capital of two billion dinars. laws constrained and stressed that the size of the deposits of private banks is disproportionate to dependence and therefore increase its capital must be under realistic policy to support the private banks which do not require all banks to be the capital of this size is constrained by laws preventing them from doing business and direct investment. Indicating that the ايصح strikes harsh banks with high rating from the central bank through this procedure. market volatility and pointed out that any decision politically he or economically would cause market instability and volatility in exchange rates, indicating that the central bank's decision last in the exclusion of 12 banks waged from the currency auction shares of the depreciation of the local currency against the dollar. decision is thoughtful of his adviser said the Iraqi Institute for Economic Reform, Dr. Ahmed Al-Husseini said the central bank's decision not carefully thought out than a state of confusion was born in the fluctuation of the exchange rate. He called al-Husseini told the (morning) to give those banks another chance because each seeks to establish a partnership banking with foreign banks large and well-known in the world. said Chancellor told the (morning) that long امهلها the central bank in its resolution last up capital of banks civil It is four months is sufficient to achieve the increase as well as the presence of articles 27 and 28 of the Banking Act, which Takidan the work of those banks and prevent them from doing business banking truth Kalancth trade and investment different, which contribute significantly to increase their capital. penalties for banks and noted that the leaders of the Central Bank of the current began moving to take sanctions against banks over their direction in helping them to enter and participate in the process of economic development and taking the role of the real economy. decline in stocks and noted that the shares of these banks and their reputation in the stock market will drop what is causing the low price of its shares if they learned that the banking sector is one of the the largest economic sectors heavily traded stock, and therefore, the decision this formula سيضربها in the core while the country needs great efforts in the development of the private banking sector and the establishment of offshore banking partnerships to attract foreign investment. He pointed out that the parallel market, including banking companies and Alostat Finance will be stronger presence to exercise pursuant to tell him her where in addition to it hitherto unknown to the public such as banks civil. his part, said consultant in finance Mazen dear: that the process of raising capital of banks is not the solution best suited because raising capital burdening shareholders often difficult to take advantage of this method. Pointing out that the profits banks will decrease headed increase capital due to limited banking products derived from the paragraphs of the Banking Act. He believes that the issue of integration of banks with sheets weak financial is also an extensive line due to a variation in the ideas and boards of directors and private shareholders major proposed solution optimally to get to achieve the goals of the banking sector through the formation of companies with foreign banks as a result its holdings of experience banks can acquire a voluntary basis as well as the application of electronic systems destination correct. repeal of Article 28 of the Banking Act either banking expert Muhannad Qassim al-Saadi said: Banking Act formulas quickly in the era of Bremer has been used terminology and labels curious about Iraqi law, where you do not know the meaning Furthermore, this law does not meet the aspirations Iraqi banks because it is in the hands of Iraqi banks. stressed Saadi on that in order to establish private commercial banking institution must have its own money any money contributors pointing to the need not state's contribution to any part of the capital, noting that the general principle of this banking institution is a partnership and the company Know the law Iraqi agreement bodyguards or more to participate draft commercial and sharing Maintg him of profit permission end profit afterthought that the Banking Act, the current under Maitalq determine profits and specifically Article 28 of the Banking Act, which was preceded by Article 27, which identified a range of activities that is possible to exercise and did not remember all the activities, but part of it. pointing out that Article 28 prevented banks from Mmarssh activities within the core of the banking business is investment as well as to prevent any activity that is not listed in Article 27, but after taking the approval of the Central Bank of surprising that the central bank when addressing to take approval of the activity is not mentioned in Article 27, which reads as follows "bring the banks to exercise any activity not mentioned in this article," What made us tied up in the vortex of the exercise of a particular aspect of the banking business and lack of exercise second aspect of a proposed solution which modify the wording of Article 27 and the abolition of Article 28, the entire by legal experts Iraqi bankers and managers of banks.
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