Central Bank called by private banks and the latter calls for new legislation

[jetphyxr]

The Iraqi Central Bank agreed to remove the restrictions impede the movement of "private banks" within the local market, announcing the lifting of uncertainty about some articles of the law of Iraqi banks in 2004.

The Association emphasized the private banks reached the committee of the Central Bank and the Securities and private banks, some of the paragraphs to clarify ambiguities in the law in question, called for the creation of legislation governing the work of "Islamic banks".

While drawn to the government's intention to open branches for the conduct of Islamic banking, pointed to the issuance of "electronic instruments" within 24 hours, confirmed and placed a number of "automated teller machines" in some public places.

The number of civil Iraqi banks, has asked to amend "the law of Iraqi banks," the uncertainty of some of its articles, as well as the circumstances raised by the article, especially the twenty-eighth of it.

The experts confirmed the lack of law to include decisions related to the work of development and investment banks as well as Islamic, cautioned that the private banks will not prosper, but in light of private sector economic active.

In an interview with "the world", said Vice Governor of Central Bank of Iraq appearance of Dr. Mohammed Saleh on Wednesday, that "there was ambiguity in the interpretation of Article 28 of the Banking Act, Now can these banks enjoy the right to buy bonds to finance industrial and agricultural projects and financial, within the share of their investments amounting to 20 per cent of the capital, on the grounds that these banks' capital will be huge next year, 250 billion dinars. "

Saleh added that "the Banking Act applies to all banks without discrimination, regardless of whether they are civil or government, although private banks have a number of particularities and complexities in their work," pointing out that the law "does not prevent the counterparts of government to cooperate with it and the practice of partnership with , subject to compliance with regulations, decisions and laws on this matter. "

And criticizes specialists Law of Iraqi banks, enacted in 2004 by authority of the civil governor Paul Bremer because it contains many of the shortages, while interested in the Iraqi Central Bank to maintain price stability, and the implementation of monetary policy, including exchange rate policies, and management of reserves of foreign currency, and issuing and managing currency, in addition to the organization of the banking sector.

For his part, Abdul Aziz al-Hassoun director of the Association of private banks, in his interview with "the world", said yesterday that "Article 28 of the Banking Act was the need to interpret in line with the activities that are entitled to private banks exercised," explaining that "the legal provision regarding the identification of activities prohibited on the banks engage in them, which included also a number of areas of investment which is at the heart of its work, such as buying shares in certain companies, or the establishment of insurance companies, and so on of other activities. "

And the goldfinch that "the banks much capital, and want to work, and insurance closer profession of banking, and this habit of all banks in most countries of the world, as it is the first area for her," adding that "which confused our decision was issued by the Central Bank two years ago, serving get rid of all those activities, and that means damage to the local market. "

He Goldfinch that "this is why we have to form a committee of the Securities Commission and the Central Bank of Iraq and the private banks, which submitted a proposal to amend the interpretation of that article, which has responded with the Central Bank, which launched banks now freedom operate better."

Article 28 of the Banking Act it is not permissible for any bank from the private sector to exercise or participate as an agent, partner, or owner of the trade, wholesale or single or manufacturing processes, transfer, agriculture or fisheries, or mining or building or re-insurance, or any activity or work other than authorized. The Director of the Association of private banks, said that "the said Act did not address the Islamic banks, there is no text organizes its work, given that their activities are different from conventional banks are not commercial but investment is different from private banks, which requires the need to find their own legislation," pointing that "now numbering in Iraq has reached 10 banks, and no intention by the Iraqi government to open branches or departments within the banks shall carry on Islamic banking, but that need legislation."

The goldfinch that "private banks today has been enhanced entities Finance and is now working according to modern international standards, and are associated with each network works in different provinces, so that if the deposited funds in the province of what, you can withdraw from the province of other smoothly, and her work is evolving day by last, "noting that it was able to issue electronic instruments within 24 hours after it was issued in 7 days, through what is known as electronic clearing, so bank related to another and converts the amount to be handed over to him."

The Goldfinch "The banks seeking to develop the mechanics of banking, including the development of machines for the ATM in a very limited number of public places such as some airports, hotels, restaurants, and can spread more, but the current situation does not allow for security reasons and cultural concerning the conduct of some individuals." In turn, the financial expert Majid picture, in an interview with "the world", said yesterday that "the Banking Act lacks the specific paragraphs, include the work of banks, investment and development as well as Islamic, which is not addressed only to the work of commercial banks."

He called the picture "The government has given the private banks and government one level, considering that any action distinction in handling them is rejected absolutely," noting that "private banks affected by the level of private economic activity, so that if it were the work of the private sector is growing, to the work of these banks are growing as well, As the first activity is weak, this will reflect negatively on the performance of private banks, hence the claim should be treated equally by the government with the government banks. "

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[JayP]

This is a great thing. Any advancement in the legislation regarding banking is a great thing. There was a document sent from the Embassy of Baghdad in Feb 2010. It talked about Mobile Banking, what it would do for the economy, but the obstacles it was still facing.

Here is a clip from it though:

"Getting the necessary regulatory, technical, and consumer protection infrastructure in place for mobile banking obviously will take some time. Delays, however, could lead the private sector and public to find more immediate workarounds, which may lead to prudential and security vulnerabilities. Once operational, the attractiveness of mobile banking may spur many more Iraqis to move their money into the formal financial system, a boon to economic development. Iraq's private banks (who have a technological and service advantage over the state banks) may also stand to gain as they are better able to offer these services. Despite these advantages, however, growth of the private banking sector will be limited as long as Iraqi government entities are forbidden from doing business with private banks - the government accounts for approximately 60 percent of employment and GDP."

This is encouraging for the overall economy to see articles like this talking about the legislation regarding the banking!

[JayP]

sorry .. double post

Edited February 16, 2012 by JayP

[Maggie123]

"The number of civil Iraqi banks, has asked to amend "the law of Iraqi banks," the uncertainty of some of its articles, as well as the circumstances raised by the article, especially the twenty-eighth of it.

The experts confirmed the lack of law to include decisions related to the work of development and investment banks as well as Islamic, cautioned that the private banks will not prosper, but in light of private sector economic active.

In an interview with "the world", said Vice Governor of Central Bank of Iraq appearance of Dr. Mohammed Saleh on Wednesday, that "there was ambiguity in the interpretation of Article 28 of the Banking Act, Now can these banks enjoy the right to buy bonds to finance industrial and agricultural projects and financial, within the share of their investments amounting to 20 per cent of the capital, on the grounds that these banks' capital will be huge next year, 250 billion dinars."

Article 28 of the Banking Act sounds like a law that we should be keeping our eyes open for...

Saleh makes it sound as though it's done but from reading the article it seems the private banks are asking for changes or clarification?

It's a good article. Thanks Jetphyxr for bringing it in.

[thegente]

This is very good..anything moving the banking system forward is a great sign. Thx!

The Goldfinch "The banks seeking to develop the mechanics of banking, including the development of machines for the ATM in a very limited number of public places such as some airports, hotels, restaurants, and can spread more, but the current situation does not allow for security reasons and cultural concerning the conduct of some individuals." In turn, the financial expert Majid picture, in an interview with "the world", said yesterday that "the Banking Act lacks the specific paragraphs, include the work of banks, investment and development as well as Islamic, which is not addressed only to the work of commercial banks."

There goes the guru theory of ATMs everywhere and ready to go, filled with the lower denoms...wonder how they will try and spin this one to their advantage, hahaha....thx again, great article!

[unirod]

Maggie,

The comments I focused on were "on the grounds that these banks capitol will be HUGE next year 250 Billion Dinars"

Now this year the value of 250 Billion Dinars is not very much in real value to banks. But if the Dinar rises at say even 1 to 1 with the USD, now your talking some serious ROI !!!

[Maggie123]

Unirod I Did Too! I Agree My Friend... that would be "Huge"!

[yota691]

The goldfinch that "private banks today has been enhanced entities Finance and is now working according to modern international standards, and are associated with each network works in different provinces, so that if the deposited funds in the province of what, you can withdraw from the province of other smoothly, and her work is evolving day by last, "noting that it was able to issue electronic instruments within 24 hours after it was issued in 7 days, through what is known as electronic clearing, so bank related to another and converts the amount to be handed over to him."

[cooked]

In an interview with "the world", said Vice Governor of Central Bank of Iraq appearance of Dr. Mohammed Saleh on Wednesday, that "there was ambiguity in the interpretation of Article 28 of the Banking Act, Now can these banks enjoy the right to buy bonds to finance industrial and agricultural projects and financial, within the share of their investments amounting to 20 per cent of the capital, on the grounds that these banks' capital will be huge next year, 250 billion dinars. "

Read more:

Certainly sounds like they expect the Dinar to have some value, huh?

[JustNTime]

The goldfinch that "private banks today has been enhanced entities Finance and is now working according to modern international standards, and are associated with each network works in different provinces, so that if the deposited funds in the province of what, you can withdraw from the province of other smoothly, and her work is evolving day by last, "noting that it was able to issue electronic instruments within 24 hours after it was issued in 7 days, through what is known as electronic clearing, so bank related to another and converts the amount to be handed over to him."

I like that part.

Lets Go International!

[Stryker365]

Very good article, here this The Future of Iraq Project for those that have not read it.

This was written as the plan to transform Iraq from a dictator’s régime to a Free Market Democracy.

We are on the last Chapter of this project, Tape 20 ; BANKING AND FINACE PLAN

THE BUILDING OF THE NEW BANKING STRUCTURE....We are on that part of the plan now folks

I can't post it, it's PDF file, sorry. I looked thru the help section and it said I was beyond help... ..

if someone will give me a clue on how to do it, I'll try again. It will need to be places as an attachment and that may not be doable in here.

This article is talking about what Adam said in his chat yesterday and the post that I made on page 4. The ATM's are read, the backs are ready and the CBI is ready. The Future of Iraq Project was written in 2002, revived in 2003, then declassified in 2010...I think, the dates may be off a little anyway. Folks we are read too.

They said bonds would not be bought or sold this year in other articles but this one says the are, so that may be ready…

[JustNTime]

Very good article, here this The Future of Iraq Project for those that have not read it.

This was written as the plan to transform Iraq from a dictator’s régime to a Free Market Democracy.

We are on the last Chapter of this project, Tape 20 ; BANKING AND FINACE PLAN

THE BUILDING OF THE NEW BANKING STRUCTURE....We are on that part of the plan now folks

I can't post it, it's PDF file, sorry. I looked thru the help section and it said I was beyond help... ..

if someone will give me a clue on how to do it, I'll try again. It will need to be places as an attachment and that may not be doable in here.

This article is talking about what Adam said in his chat yesterday and the post that I made on page 4. The ATM's are read, the backs are ready and the CBI is ready. The Future of Iraq Project was written in 2002, revived in 2003, then declassified in 2010...I think, the dates may be off a little anyway. Folks we are read too.

They said bonds would not be bought or sold this year in other articles but this one says the are, so that may be ready…

You said it, and I believe you! +1 (you seem to get a lot of those)

I looked thru the help section and it said I was beyond help... ..

I have been told that a few times

[DetroittoAZ]

Nice find

[Shick]

This is a good article, thanks for sharing. GO RV GO!