Iraq Economic News and Points To Ponder Sunday Afternoon 8-4-24
Al-Fath: Foreign Banks In Iraq Do Not Have Cash Value
Information/private.. member of the Al-Fatah Alliance, Mahmoud Al-Hayani,
revealed the presence of large corruption files within the Iraqi banking business and the involvement of major figures, while confirming that foreign banks in Iraq do not have monetary value that benefits Iraq.
Al-Hayani said in a statement to the Maalouma Agency, “Foreign and Jordanian banks in particular do not have funds through which they can supply the Iraqi market with the monetary mass, and their presence inside Iraq does more harm than good,” noting that “the Central Bank of Iraq was unable to find solutions and did not rise to the level.” Required".
He continued, "The reason for the entry of foreign banks into the country is due to American dictates exercised on the Central Bank in order to grant them licenses to operate in Iraq according to special privileges," pointing out that, "The Iraqi government needs support from the political forces and concerted efforts in order to distance the banking business from suspicion." And corruption.”
The economic expert, Mustafa Akram Hantoush, had confirmed that the measure taken by the Central Bank of Iraq was to grant business licenses to Jordanian banks and operate in the country, indicating that it was the duty of the Central Bank to strengthen Iraqi banks instead of Jordanian ones.
https://almaalomah.me/news/72220/politics/الفتح:-المصارف-الأجنبية-في-العراق-لا-تملك-قيمة-نقدية
An Economist Calls For Consideration Of The Work Of Jordanian Banks In Iraq
Information/private.. economic affairs expert Ahmed Abd Rabbo called on the Central Bank of Iraq to reconsider the work of Jordanian and foreign banks in Iraq to evaluate their work compared to local Iraqi banks.
Abd Rabbo said in a statement to the “Al-Ma’louma” agency, “The Central Bank is working in a dualistic manner by not supporting the private banking sector and granting privileges to Jordanian banks,” noting that “foreign banks, especially Jordanian ones, control the file of financial transfers, in light of issuing sanctions against half of the local banking sector from By the US Treasury Department.
He added, “Today the Iraqi banking sector is facing a major problem and we fear it will be completely annihilated, as happened in the industrial and agricultural sectors and thus Iraq’s dependence on imports,” pointing out that “the Iraqi government must accelerate negotiations with Washington in order to lift the sanctions on Iraqi banks.” He called for "activating the principle of fines for unintended errors that occur in banks instead of penalties."
Specialists believe that the economic file cannot be handed over in this way, as it is a sovereign matter that affects the security and economy of the state, with these banks taking over and penetrating the economy to a great extent, which may make the Iraqi economy hostage to the Jordanian banks. https://almaalomah.me/news/72231/economy/اقتصادي-يدعو-للنظر-بعمل-المصارف-الأردنية-في-العراق
Alia Nassif: Central Bank Policy Is Pushing Iraqi Banks Towards Execution!
Execution of Iraqi banks with licenses to foreign banks July 31, 2024 Last updated: July 31, 2024
Independent/- Representative Alia Nassif strongly criticized the measures taken by the Central Bank of Iraq towards local banks, considering that these measures contribute to “the execution of Iraqi banks.”
tweet on the Nassif explained in a She also indicated that licenses would be granted to two other banks, one Kuwaiti and the other Qatari.
She said that these steps come at a time when many Iraqi banks continue to suffer, as their activities have been suspended and more of them have been closed as a result of the policies of the Central Bank.
She expressed her dissatisfaction with the management of the Central Bank, which did not address the accumulated problems in the banking sector during previous periods, but rather worked to bring local banks into contracts with K2 Company and pay money without achieving tangible results.
Nassif pointed out that the Iraqi banking sector is now being punished for mistakes committed in previous years under the supervision of the same current administration of the Central Bank.
She wondered why this administration did not hold itself accountable for its failure to perform its oversight duties during that period.
These statements come in light of a state of uncertainty and anxiety that dominates the banking sector in Iraq, as it suffers from instability and declining confidence.
The entry of foreign banks into the Iraqi market raises questions about the future of local banks and their ability to compete in light of the current challenges.
This step is part of the government's efforts to attract foreign investments and strengthen the financial sector, but
there are fears that it will be at the expense of local banks that are facing great difficulties.
Some representatives and experts call for the necessity of reviewing banking policies and providing the necessary support to local banks to enhance their ability to compete and achieve financial stability.
In light of these developments, the future of the Iraqi banking sector remains dependent on the decisions and policies that the Central Bank and the government will take to achieve a balance between attracting foreign investments and supporting local banks. https://mustaqila.com/المصارف-العراقية/
Despite Their Large Numbers...A Shocking Percentage Of Government And Private Bank Services In Iraq
Time: 08/02/2024 Read: 1,573 times {Economic: Al-Furat News} A government advisor revealed a shocking percentage and number of banking services in the public and private sectors provided to the public in Iraq.
Mazhar Muhammad Saleh told {Al-Furat News} agency, “The lesson in the stability of the banking market in particular and the financial market in general is not the large number of private banks and financial companies, as
the lesson lies in achieving (financial depth), which means how much banking and financial activities and services contribute to the growth of output.”
The annual gross domestic product in the country, that is, through the capacity of services provided by these banking companies to the public, in quality and quantity, to maximize the added value in economic activity. He added that these banking services “in the gross domestic product revolve around a growth rate that does not exceed 1.5% in most cases,
which is a low percentage compared to developed countries where this percentage rises to more than 20%.” Saleh stated,
“Accordingly, the sobriety and stability of the financial and banking market in particular is measured by the number of services provided to the public, and the number of its services still does not exceed 12 services at best, while it should rise to 45 banking services as a minimum.”
He continued, "As for banking density, which is measured by the population's share of bank branch services, despite the huge number of government and private banks, the share of their branches in providing banking services to the population is still low." He explained, "It is noted that the services of a single branch of these banks are still disproportionate to the population.
The banking density in our country is approximately 40 thousand people per branch on average, while it should not exceed ten thousand people per branch unless it is less, as is the case
in the countries of the developed world, which One branch provides its services to an average of no more than six thousand people per banking branch.” https://alforatnews.iq/news/رغم-كثرة-أعدادها-نسبة-صادمة-لخدمات-المصارف-الحكومية-والأهلية-في-العراق
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