Proposals to strengthen the credibility of the private banks
09/16/2012 12:00 am
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BAGHDAD - morning : moving economic cabinet to activate the role of the banking sector in the development of that backbone and the main gateway to the development of the Iraqi private sector, one of the most important indicators of economic and social development so that economic systems developed must be characterized system developed banking contributes in the process of achieving economic balance and encourage investment activity through its facilities and guarantees. reflects this trend Mazhpt him by the Economic Commission for the private sector in the Council during its second meeting under the chairmanship of Deputy Prime Minister d. Rose Nuri Shaways Chairman of the Economic Committee. And the presence of the Minister of Commerce and Chairman of the National Investment and Chairman of the Securities Commission and Deputy Minister of Agriculture and Deputy Governor of Central Bank of Iraq and the Director General of Trade Bank of Iraq TBI.
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announced it's morning high level source and authorized in the economic council and explained that the presence of the private sector comprised of Union Iraqi industries and the Association of Iraqi banks and the Federation of Chambers of Commerce as well as the Union of businessmen and Iraqi Federation of Iraqi contractors in addition to the Iraqi National Business Council.
The source indicated that the Committee discussed the paper on the development of the banking sector, which included several axes, notably enhancing the credibility of the private banks and so by accepting payments instruments certified issued from private banks at $ (100) million dinars instead of (5) million dinars specified maximum with great importance in the boot in front of ministries and government agencies to deal with these banks of assurance and confidence needed.
and paper noted that the development of use of modern technology in the banking entailed products Useful contribute where work in the development of performance through banking and an example system RTGS (Settlement System Real Time Gross), one of the systems managed by the central bank through which can any government department can ask clients of auditors or contractors that they will pay what it's worth to them to government agencies through the conversion of that solved most of the problems of risk and relieve the burdens of trading instruments and recorded with various departments and depositing them to collect between banks.
study showed the possibility of opening government accounts in private banks up to a fixed roof, and approaching private banks by ministries and government departments for the purpose of opening credits documentary worth less than five million dollars for companies contracting with them and the conditions and special instructions to ensure all rights of the state, including the non-payment of any amount only after receipt of all documents to open the credit guarantees install dependence irrevocable support received from the Bank approved equipped with those procedures.
showed that among Challenges include the Banking Law No. (94) for the year 2004 some restrictions on banking business, especially in the materials (27, 28, 30, 33) which affected the ability of banks to move in the market and expand its activities in it.
alerted to the continuing conservative monetary policy in terms of preventing the development of the private sector, while it was possible to provide loans guaranteed by the project or direct participation funding as a financial partner.
and recommended the abolition decision of the Ministry of Finance not to deal with private banks and support of private banks and rework lending mechanisms and the adoption of the true value of real estate as collateral for the loan and the adoption of industrial assets as collateral in the lending process, where there the government banks tens of trillions that does not benefit them will lead to a decline in value over time causing heavy loss to the state.