Millionday News 11/19/14 Part 2
Welcome to dinarupdates.com for Roundtable with Millionday!
Millionday: Islamic banking operations account for 1.5% of total assets of Iraqi banks and could rise to 6% in the next three years if stability returns to the country and a legal framework is put in place to regulate the industry, experts said.
There are eight Islamic banks among Iraq's 32 private banks while foreign Islamic lenders, such as the UAE's Abu Dhabi Islamic Bank, have also opened branches in the oil producing country, according to the central bank.
Millionday: NOTE -- THEY ARE SAYING THEY ARE WAITING FOR LEGISLATION TO BE ACTIVATED
Millionday: CHECK THIS OUT
Millionday: Most banking activities are conducted by state-owned banks Rafidain and Rasheed.
Assets of Iraqi banks currently amount to approximately 200 trillion dinars; 90% of which is held by state banks, which are commercial, and only 10% is held by private banks that practice commercial and Islamic banking," Mathhar Saleh, former vice-president of Iraq's central bank, told Zawya.
Millionday: "Islamic banks account for 1.5% of total assets of Iraqi banks, amounting to nearly 3 trillion dinars, and this could grow to nearly 6% in the next three years if there is political and economic stability and with the introduction of the necessary legislation," he said.
Millionday: NOTE -- OBVIOUSLY EXPECTING LEGISLATION AND REFORM
Millionday: Saleh said Islamic banks are still operating under a 1994 law that regulates commercial banks and that no legislation had been introduced to help develop a fully Islamic financial sector.
Millionday: IT APPEARS THAT THE IRAQI BANKS HAVE LEGISLATION
Millionday: Sadeq Shammari, managing director of Iraq's National Islamic Bank (NIB), said Islamic banks were waiting for legislation to expand their offering of products.
He said existing products were mostly based on murabaha, a common sharia-compliant sale contract, but that banks were looking to launch mudaraba, an investment management partnership, and other Islamic finance instruments.
Millionday: "The biggest challenge facing Islamic banks in Iraq is the absence of a legislation regulating the work of Islamic banking. There are serious attempts by the Central bank of Iraq to draft legislation on Islamic banking, but it is still under consideration," Shammari told Zawya.
"We are awaiting the issuance of such legislation on Islamic banking to be able to launch new products."
Millionday: NOTE -- THE ISLAMIC BANKS ARE WANTING TO EXPAND
Millionday: Another challenge facing the sector in Iraq is a lack of expertise on Islamic banking transactions and instruments, he said.
NIB's total assets grew by 38% in the first half of 2014 to 702 billion dinars, compared to 507.7 billion dinars in the same period last year.
Predominantly Muslim Iraq, home to around 2.8 million people, offers growth potential for Islamic banking and the country requires foreign investment across most sectors to rebuild its infrastructure.
Millionday: But the security situation in Iraq has deteriorated sharply after Islamic State militants occupied large parts of the country. The International Monetary Fund expects the economy to contract 2.7% in 2014 after growth of 4.2% last year.
Millionday: NOTE -- HERE ARE THE BASEL REQUIREMENTS -- INTERNATIONAL COMPLIANCE
Millionday: Shammari, who is also a member of the World Union of Arab Bankers, said one of the biggest challenges facing Islamic banks in the Middle East was the attempt to adapt laws and regulations to Basel III banking standards, which are being phased in from 2015 to 2019.
Shammari called on Arab central banks to activate monitoring of Islamic banks' capital adequacy and the extent to which they comply with sharia law. He said a dedicated department should be set up for Islamic banks.
Millionday: NOTE -- SO ISLAMIC BANKS HAVE NOT TAKEN ON BASEL REQUIREMENTS
Millionday: "Research centers should be established to develop Islamic banking products...rules of governance, transparency, disclosure, accounting and auditing, financial solvency, risk management, bad debts and financial supervision," he added.
A study conducted by Thomson Reuters showed that Islamic commercial banks had assets of about USD 1.2 trillion by the end of 2013. According to Kuwait Finance House, assets are expected to grow to USD 2 trillion by the end of 2014.
Millionday: THAT IS A HUGE GROWTH -- .8 TRILLION WOW --- SO AS WE KNOW THEY ARE ALREADY OPERATING SO HOW THIS EFFECTS THE ISLAMIC BANKS AND THEIR OPERATION WOULD HAVE TO BE RESEARCHED MORE THE HAVE STABLE INFO
slh5282: How many dinar are said to be in circulation?
Millionday: I FORGET WHAT THEY SAID OUTSIDE THE COUNTRY
Millionday: ANYONE REMEMBER?
mrref1216: They started out with 9billion
Millionday: OR EVEN IN CIRCULATION -- WHY ?
Josie :Your previous post just stated "Assets of Iraqi banks currently amount to approximately 200 trillion dinars"
mrref1216 :went down to 6 and now at present 4
bluedog :Basel Compliance: Basel II is the second of the Basel Accords, (now extended and effectively superseded[clarification needed] by Basel III), which are recommendations on banking laws and regulations issued by the Basel Committee on Banking Supervision.
Basel II, initially published in June 2004, was intended to create an international standard for banking regulators to control how much capital banks need to put aside to guard against the types of financial and operational risks banks (and the whole economy) face. One focus was to maintain sufficient consistency of regulations so that this does not become a source of competitive inequality amongst internationally active banks. Advocates of Basel II believed that such an international standard could help protect the international financial system from the types of problems that might arise should a major bank or a series of banks collapse.
In theory, Basel II attempted to accomplish this by setting up risk and capital management require
slh5282 : If the banks are holding this much and the worth in country, they have huge reserves in and this does not include the Warka banks?
mrref1216 :The note count is very important in the RV the lower the note count the higher the RV...
Millionday :YES WE KNOW THE BASEL REQUIREMENTS FOR THE BANKS BUT HOW THIS WILL AFFECT ISLAMIC BANKING AS IT IS -- NOT SURE
slh5282 :Or is Warka included in the private or arent they a national
Millionday :BASEL III IS WHAT THEY ARE TALKING ABOUT
Millionday :WHERE DO YOU GET THAT
Millionday: IT IS NOT CALCULATED BY HOW MANY BILLS THEY HAVE OUT
Millionday: WARKA IS IRAQI BANKS
bluedog Millionday: It's on Wiki, and I posted it for anyone who doesn't know the details. Basel III is not yet complete is it?
Millionday: NOT EVERYWHERE
bluedog Millionday: Basel III is Federal Reserve in US, not world wide yet
Millionday: IT IS ALSO SOMETHING THAT IS CHOSEN FOR WHAT THE BANK WILL BE DOING
Millionday: FOR INSTANCE IF THE BANK IS INTERNATIONAL AND CORPORATE OR A PRIVATE BANK –
THE REGULATIONS OF WHICH BASEL COMPLIANCE WAS REQUIRED WAS DIFFERENT DEPENDING ON WHAT THEY OFFERED AND SERVED
bluedog Millionday: Agreed, and it's a sort of "hedge" fund against risk.
Millionday: SO THE CHANGES ARE TAKING PLACE AS THEY GO AND BEING APPLIED DEPENDING ON THE BANK
Millionday: I KNOW THE ISLAMIC BANKS ARE OPERATING SO VERY STRANGE TO SEE THIS NOW AFTER THE ISLAMIC ANNOUNCEMENTS THAT TOOK PLACE OF THEM TAKING IRAQ BANKING INTERNATIONAL --
Millionday: VERY HARD TO UNDERSTAND THE CONFUSING REPORTS
Josie: MD: Your previous post just stated "Assets of Iraqi banks currently amount to approximately 200 trillion dinars". Do you think that is all assets or just speaking to their Dinar currency.
If all cash (Dinar) then seems like a revaluation of 200 trillion (!) would have massive global impacts .... ?
Millionday: ALL ASSETS
Josie: Includes oil in the ground then I assume at that number ?
bluedog Millionday: Do you think banking regs are attached in any way to a potential RV? Or are they just a side note in the process?
Millionday: I AM GOING TO HAVE TO DO SOME RESEARCH -- I DONT LIKE TO JUST GIVE YOU WHAT I THINK WITHOUT INK
Millionday: THE ISLAMIC BANKS WANT TO OFFER MORE SERVICES --- THEY WANT TO HAVE A PIECE OF THE BANKING INDUSTRY REVENUES
Millionday: LET ME SEE WHAT ELSE THEY ARE DOING TODAY BRB
Millionday: Iraqi Central Bank announced on Tuesday, was headed for the province FATF in Bahrain to discuss the anti-money laundering issues, indicating that the session will come to adopt the recommendations of the accepted international standards in this regard.
Millionday: NOTE -- FATF
Millionday: The bank said in a statement: "Alsumaria News", a copy of the "received the Governor of the Central Bank of Iraq on the Keywords presided over the work of the twentieth session of the Financial Action Task Force (MENAFATF) held in Bahrain
to discuss the fight against money laundering and terrorism financing issues," adding that "the session will last from 16 and up 21 of this November. "
Millionday: NOTE -- THIS IS WHERE THE CBI GOVERNOR IS
Millionday: He added that the bank "will emerge session to adopt the recommendations of the accepted international standards in this regard, as well as any other criteria adopted by the Arab countries to strengthen the fight against money laundering and financing of terrorism and the proliferation of arms in the region."
Millionday: NOTE -- THE IMPLEMENTATION OF INTERNATIONAL COMPLIANCE
Millionday: A report of the Institute of Government in Basel , Switzerland, in September 2014 that Iraq was ranked sixth globally in terms of highest risk in the fight against money laundering n "Iraq occupied the sixth largest in the world in the highest risk in the fight against money laundering as the highest risk countries.
The governments of 14 Arab countries had been held in November 30, 2004, a ministerial meeting in Manama , Kingdom of Bahrain , on the establishment of the Financial Action Group for the Middle East and North Africa in order to combat money laundering
and the financing of terrorism (MENAFATF) works along the lines of FATF (FATF) , it was agreed to be the host country is the Kingdom of Bahrain.
Millionday: SO NOW WE KNOW WHERE THE GOV OF CBI IS
Millionday: THE MEETING WITH PARLIAMENT MUST FOLLOW
Millionday: REMEMBER HE WAS TO GO BEFORE PARLIAMENT WITH PLANNING AND OIL AND FINANCE ETC
Millionday: SO HOME TOMORROW OR NEXT DAY IT APPEARS
Millionday: THATS IT FOR ROUNDTABLE AND WE WILL SEE YOU TONIGHT
Millionday: SEE ALL OF YOU AT 730 EST TONIGHT
Millionday: LOVE INTERNATIONAL COMPLIANCE AND PROTECTION
mudder Millionday: Have you read anything today about bagdad paying the money owed to the kurds??? There's a article out this morning
Millionday: NO NOT YET THEY HAVE AGREED