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Iraq requires 640 banks and experts in banking sector

05 Dec 2012
The amount of specialist which Iraq has in the banking sector seems not adequate now days to correlate with their economy. It is believed that for the purpose of banking 50 people require one bank so an increase to 640 banks in the country is now very necessary. According to the news of the news agencies global banks should get an encouragement from the government to open their branches in Iraq. This will help to energize the economy of Iraq. The banking arrangement of Iraq is composed of 43 banks which include 7 central banks, 30 al Ahli bank, 7 Islamic banks and 6 foreign banks. Mr. Abdel Hussein al Yasiri, who is a member of finance committee of the national alliance deputy, said that the countries which are taking new economic angel are eventually taking themselves from socialist economy arrangement to a complimentary market economy. The support of private sector helps to form a correlation between global and local banks which will be fruitful for the country. He also said that the local banks of Iraq are unable to fulfill the demand of the country because the funding is very limited and also these local banks do not have the privileges which global banks have. Mr. Al-Yasiri also said that according to the statistical report 50 people should fulfill their banking needs in 1 bank, so Iraq needs about 640 banks to fulfill their banking requirements as the population of Iraq is 32 million. Nahida Aldaini, a member of the committee of the Iraqi economy and investment coalition said that the local banks are not responsible for the poor economy of their country but because of such a minute capital global banks are not showing interest to open branches in Iraq and eventually are not able to help their economy. Aldaini also said that the state banks like Rasheed bank and Rafidain bank are not capable to fulfill all the need of their respective states like loans or salary because of lack of capital. Aldaini also said that the buyers are in deep trouble because people who buys funds installment to establish a house are very much dependable upon the loan as the capital is very minute in their hands. Also many projects which have been passed from the parliament have still not started because of lack in the fund of the country. She annex that the environment of investment in Iraq requires a strong interference from the global banks, this will boost the country’s economy. This will help people gain loan from banks and this economical growth will attract the attention of many banks and will ultimately lead to opening of branches in Iraq. To attract foreign investment experts are required. These experts will not only attract investors but also will help to form a correlation between local and global banks. According to the news of agency only a huge capitalization and high experience can lift the economy of Iraq and form a wonderful environment for the local banks, so they will be easily able to provide good service at very minute cost. This wonderful atmosphere for banking will lead to the development of Iraq by the process of global experience. He also said that the world banks should be animated to introduce themselves in the banking sector of Iraq and should establish some branches in Iraq because this will provide some stability to the economy of Iraq. The process of entering Iraq has been very easy lately as the central bank law has opened their arms for the global banks and it will welcome every global bank to open their branches in Iraq. This law has also provided many facilities to foreign banks. This law has granted the access of foreign money in Iraq. The investment law No. 13 of 2006 has debarred investment in the sector of banking of its supplies. The banking sector investment will form its legal structure which will be based on the central bank legal number 56 of 2004. The minimum capital that is required to form a bank in Iraq is about $ 85 million. Source: [Ikhbaria News ]
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