Central Bank: 70 banks in Iraq and a plan to integrate them
2018/9/18 8:32
{Baghdad: Al Furat News} The Central Bank of Iraq, the number of private banks operating in Iraq.
"When I assumed responsibility, I found that the number of private banks, transfer and exchange companies exceeded the need of the market. We did not grant any new license to open a commercial bank or a banking license. We also canceled the transfer companies, Intention to restructurethe banking companies, which leads to greater control over them and there is a plan to merge some banks. "
"But we have given us licenses to open a number of Islamic banks based on the facilities provided by its law, as the Council of Representatives put forward a paragraph that helps to establish it, reducing the required capital at the time of incorporation."
"There are currently 70 working banks in the country, 20 of which are branches of foreign banks, but most of them are newly formed, so it did not reach the level of ambition, and these banks worked under exceptional circumstances experienced by the country."
"As you know, the main task of banks is to provide credit through the granting of loans and other services, in return, take the funds of depositors and give them a percentage of interest, but Iraqi banks in general have a great difficulty in doing this Activity. When a loan is granted, the borrower often does not meet its repayment despite the high collateral given by the banks and the high interest rate, as borrowers may be up to 20 percent. "
"The problem is that the bank, when it starts its actions against the borrower, such as the seizure of the property, for example, faces a significant delay in legal proceedings by other parties, in addition to threats of tribal or partisan, and this makes banks afraid to grant loans."
alforatnews.com
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