For the banking sector in Iraq

For the banking sector in Iraq

- in Releases
1502
Comments Off on For the banking sector in Iraq

kurdistan%d9%80iraq

 

In any country, the monetary policy is one of the key pillars in supporting the national economy and development ,So the adopted plans  should be reconsidered  for the development of the potential of the banking sector and enhance opportunities for its contribution to the mobilization of savings and attract deposits .

 

Iraq and in the midst  of unstable political and economic situation  , it is required  to perform  a comprehensive review of the work  and mechanism  of the banking sector, which suffers from gaps that confound its work over the past years, especially with the busyness  of  policymakers  with security and political conditions that did not know the serenity for more than 13 years, where  the country has been  turned  into chaos state after the entry of the US occupation forces to Iraq in 2003.

 

This flaw is not in Baghdad, but also in the Kurdistan region of Iraq, which was not in isolation from events in the whole of Iraq, here Banking  experts point to flaws in the architecture  of Iraqi banking system , in terms  of that there is  no state that  contain  two central banks on its territory, it is not only this, but that the Central Bank of the region  is  without the law so far, and this is due to the dominance of the Ministry of Finance in the region on  it, as it is doing all financial transactions and activities and the distribution of salaries, which includes the distribution of  salaries of all security institutions .

 

The  director of  Federal Central Bank  confirmed that  the two branches of the bank in each of the city of Erbil and Sulaymaniyah with their present  situation     does not represent a part or a branch of the Central Bank of Iraq, and this confuses the work and does not help the region  to provide the proper framework for the  knowledge  for the  banking work and financial institutions in the Kurdistan Region. However, the meetings between the two sides have contributed to the agreement that there is a real central bank in the Kurdistan Region, and to be part of the Central Bank of Iraq, and has all the requirements and specifications, The Bank is currently   carrying out  the process of detailed procedures relating to this trend. As shown in the attached book.

 

%d9%88%d8%ab%d8%a7%d8%a6%d9%82-%d9%85%d8%b1%d9%83%d8%b2-%d8%a7%d9%84%d8%b1%d9%88%d8%a7%d8%a8%d8%b7-%d8%a7%d9%84%d9%82%d8%b7%d8%a7%d8%b9-%d8%a7%d9%84%d9%85%d8%b5%d8%b1%d9%81%d9%8a-%d9%81%d9%8a-%d8%a7

 

%d9%88%d8%ab%d8%a7%d8%a6%d9%82-%d9%85%d8%b1%d9%83%d8%b2-%d8%a7%d9%84%d8%b1%d9%88%d8%a7%d8%a8%d8%b7-%d8%a7%d9%84%d9%82%d8%b7%d8%a7%d8%b9-%d8%a7%d9%84%d9%85%d8%b5%d8%b1%d9%81%d9%8a-%d9%81%d9%8a-%d8%a7

 

And there is an overlap in the terms of functions and procedures but until now  the decision to establish branches of the Rafidain and Rasheed bank in the region has not been taken, due to the reason that the region  required to link the Central Bank of  region with  the Central Bank and its associations with the authorities   of the region .Add to this that all branches of banks of the region   were  owned to the two  banks  before 1992, but it is linked to the Ministry of Finance in the region , thus  the two banks did not open branches in the region , so far, where the Ministry of Finance in the region attributed the cause to administrative reasons and legal procedures.

 

In talking about the corruption , we recall  that recently  the Director of the Central Bank of the region and his deputy have been arrested  by court order from the body of  integrity  of Kurdistan region , against the backdrop of  disbursement of funds of some of the instruments illegally in exchange for kickbacks.

 

Observers have expressed  their optimism  on  the decision of Prime Minister Haider al-Abadi in June 2016,  the dismissal of eight directors of the commercial banks, Rafidain and Rasheed, and real estate and , industrial and agricultural and others, saying during  his meeting  with a program” talk of al-Rafidain”  , it is a step on the road to reform.

 

But the policy of the Central Bank still faces criticism about the auction of currency sale  and dealing with banks of  private sector , and the bank’s  board is trying  the pursuit toward  setting  policies and strategic plans to  develop  the reality  of the banking sector as the  Bank launched in early 2016, its strategy for the next five years, which included the important goals.

 

CBI seeks to heal the rift that led to the decline in the banking sector by  doing the rounds of inspection and  inspecting  the transactions of civil banks , on purpose to stop the torrent of corruption that has exhausted  the Iraqi economy and the banking sector in particular.

 

The  financial officer at the US Embassy in Iraq, John Sullivan has praised the efforts of Iraq in the reform of the central bank, which confirmed that the bank has  “completed within a year more than what has been accomplished in the past 13 years “.

 

In front of the CBI great responsibilities to reform the sector, which has suffered from  many crises, marginalization and exploitation under the previous governments , to be the real house of Iraq’s  money and a source of stability of its economy, and this will be by  pursuing  international standards, and away from interference of  ministries and  dictating  policies and terms on them  that  have nothing to do with the  monetary policy and  in addition to the lack of  central bank’ ability   and its advisers to defend the bank  according to its  law, and   the steps taken by the Bank during the past period  may be the introduction of real reforms.

 

Rawabet Center for  Research and Strategic Studies