The opening of international banks (Citibank and ASC) will have positive economic impact

Posted: July 24, 2013 in Iraqi Dinar/Politics
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Experts: the opening of branches of international banks have a positive economic impact

See financial experts and bankers that the poor efficiency of local banks and not keep abreast of developments witnessed by the banking sector in the world to make way for international banks to open branches in the country, as revealed announcement bank Citigroup and American Standard Chartered, the British period, the last few years their intention to expand into the Iraqi market, what تختزنه Last of the great potential of the banking sector in this country, is that the experiences of some foreign banks in Iraq calls for caution to avoid some of the problems.

A member of the Finance Committee in the House of Representatives Najiba Najib, said that “the country’s dependence on banks balance and with a global reputation, gives confidence to the big companies and paid for the work and investment, noting that after the withdrawal of Iraq from Chapter VII note there are a lot of companies and international banks seeking to have branches in Iraq to take advantage of the budget big country and they find themselves can achieve huge profits.

said in her speech to the range, contrast, we need to support our sector banking entry through banks sober high reputation in terms of competence and experience to give it a motivation for investment companies to operate in the country better , “indicating that” it would strengthen the banking sector in Iraq and gives confidence to the major scientist to work and invest in the country.

She explained, “We can not rely on our banks because they do not continue to suffer from delays and inefficiency of the country is need of development in all economic fields.

For his part, banking expert Abdul Aziz Hassoun that the entry of these banks, investment market Iraqi impacts major economic plus it emphasizes the inefficiency of our banks. Said in a statement to the extent: that the local banks in Iraq are suffering from problems and disorders due to delays and inefficiency in some joints of its ” he said, adding “It was better during the last period that the development of its business and strengthen their financial and communications and beyond vulnerability and underdevelopment from which they suffer. And characterized the Iraqi market by low number of citizens who have bank accounts, allowing the banks a substantial margin to attract thousands of customers, particularly that the Iraqis are looking for a complete package of services ranging from current accounts to insurance services and mortgages, which are services not in the Iraqi market offers many them.

However, the Iraqi banking sector suffers from obsolescence legislation governing him and the dominance of state-owned banks and poor infrastructure and a large number of obstacles that make the exercise of banking activity is not easy at all. He says a Western diplomat who asked not to be disclosed, “Iraq has the qualifications too large for the exercise of banking activity,” he said, refers مايانك owner branch manager of Citigroup in Jordan and Iraq that the bank sees in the Iraqi market a great opportunity, as it seeks to take advantage of the benefits issued foreign banks will enter into the country.

The focus of Bank of America at the beginning of it to serve its customers browsing in Iraq, such as international oil companies operating in the oil sector south of the country, and in the long run will seek Citigroup to enter the field of commercial banking and retail (ie private individuals), but it did not announce a timetable for these steps .

Citigroup economists expect that the volume of Iraq’s economy by 2050, two trillion dollars, which exceeds the current size of 15 times, roughly equivalent to the size of the Indian economy now

And builds bank U.S. policy on upbeat outlook for Iraq, where he is expected economists they are working to become the number of Iraqis in 2050, some fifty million people and the economy of approximately size two trillion dollars, and the figure represents the last 15 times the value of the Iraqi economy now, and roughly equivalent to the size of the Indian economy at the moment.

With the development of the banking sector in the future there is a need for all well-known banking services in Iraq, where the limited proportion of citizens have access to loans and insurance, credit cards, mortgages and other financial products. Despite the tone of optimism in an interview with the owner, there are major obstacles to the banking business in Iraq, before the announcement, Citigroup last month its intention to extend its activities to the country, the Bank of HSBC British had announced days earlier for selling its stake in Bank of Dar es Salaam in Iraq, The 70% share.

And talks, diplomats and analysts for a number of major difficulties in the Iraqi banking sector, including the absence of modern legislation to pay Iraqis to confidence in the financial sector, and the banks are government Rasheed Bank and Rafidain banks dominate the field, which will reduce the incentive to innovate.

According to estimates by the World Bank did not exceed the size of the loans sector in Iraq 10% of GDP in 2010, while the ratio stood at 55% in the rest of the Middle East


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