Iraqi banks are opportunities for growth but needed for integration
Baghdad / citizen
Analysts and investors said that Iraqi banks may constitute a huge growth opportunities in the future for investors who are willing to risk the banking sector, but first needs to mergers and to change its business model.
In 2007, the companies and foreign banks putting out feelers in Iraq, one of the leading exporters of oil and who faced isolation over the past 20 years due to UN sanctions and wars, the ongoing violence since the U.S. invasion in 2003.
Iraq has signed contracts worth billions of dollars in oil and plans to mega-projects for infrastructure and hopes to diversify its economy, which opens the door to many of the deals with the banks if conditions continue to improve security. But officials say that Iraq first needs to rehabilitate the banking sector which is dominated by seven state-owned banks and about 36 of the small private banks that do not have a major interest to the economy as a whole.
Said Diaa Alckheon Advisor, Ministry of Finance of Iraq Affairs The bank is painful comparison between private banks and global banks in Iraq. He added that the huge difference in performance, size, and deposits.
According to the memo, the central bank has asked the private banks that do not usually have much access to the outside world to increase its capital to 250 billion dinars (214 million dollars) by 2013 to find banks more competitive. Alckheon said he hoped that this procedure forces the banks to find foreign partners.
The peace Sumaisem analyst and member of the Board of Directors of the Iraqi Stock Exchange The foreign investors started to buy shares in banks in Iraq in anticipation of the merger, citing a National Bank of Bahrain, which raised its stake in TBI to 49 percent last June. Sumaisem said it expects the merger between several private banks. And show foreign funds specialized in emerging markets also new interest in the sector.
Said Henrik Cam from AFP. Or. AG Asset Management, which owns shares of a fund for Iraq, "We are interested in the banking sector because it is a good representative of the Iraqi economy. And profits will increase dramatically with the reconstruction of Iraq and the growth of oil revenues." "The banks, which was founded and received a license recently enjoyed a great deal of competitiveness and command the share of the market. We believe that there will be mergers and perhaps a few of them stumble."
Said Daniel Brobbey, investment manager at Silk Invest UK fund management, are among the foreign banks are also beneficiaries of Jordanian banks operating in Iraq, such as Arab Bank, which owns bonds Iraqi and is considering entering the Iraqi Stock Exchange.
According to the CBI got ten foreign banks at least on the licenses in Iraq, mostly from neighboring countries such as Kuwait, Iran, Turkey, Lebanon, Bahrain and Jordan. Among the most prominent examples of Bank of IHS.. Me. C, which is active through the Bank of Dar es Salaam to him.
"Said James Hogan, CEO of IHS.. Me. C - Iraq" with a population of 30 million and expectations of high per capita gross domestic product in the past three to five years represents the Iraqi banking sector attractive opportunities in the medium term and long term. " Hogan said, "There is growing evidence that Iraqi consumers have become more willing - even though it selectively - to deal with private banks."
Said Ziad Makhzoumi Chief Financial Officer of Arabtec, Dubai-based real estate company that think like other companies to enter Iraq. While Iraq is rich in oil but its banks need to be developed. Most of them were state-owned before 2003 is limited only to provide basic services. Bankers say that this has not changed much, although some banks offer credit card services, while many deals being paid by check.
Analysts say that private banks will have to expand their business if it wants to attract foreign partners. So far, only a few banks provide all the services and some emphasize the retail banking and deposits or will not serve only Pmalkin associated companies of the same family. Sumaisem said that these people believe that the project of a family and do not realize that the issue is deeper and that they may play a role.
A senior adviser Qassem harmful CBI that existing loans for a total of 43 banks amounting to 6.8 trillion dinars (5.8 billion dollars) came two-thirds of the state banks. That amount is small when compared to Jordan with a total loan 20 billion dollars in June, while total bank loans in Saudi Arabia, the largest Arab economy 250 billion dollars in June.
The total capital of Credit Bank of Iraq one of the banks own large 100 million dollars, while its assets amounted to 311 million dollars in 2009. The data bank and the Stock Exchange that the paid up capital of National Bank of Kuwait, who owns Credit Bank of Iraq of 1.1 billion dollars, while assets worth 45 billion dollars.
With the continued explosions from time to time the banks are reluctant to establish a network of branches in the country, or electronic systems such as ATMs, while using only 40 percent of Iraqis, local banks with fewer branches than 800 branches in many places, while their money under mattresses beds.
Many prefer the Iraqi government-owned banks, which they knew for a long time while new private banks reluctant to lend in the absence of an effective judicial system is capable of settling disputes. But bankers hope that this will change over time.
Baghdad / citizen
Analysts and investors said that Iraqi banks may constitute a huge growth opportunities in the future for investors who are willing to risk the banking sector, but first needs to mergers and to change its business model.
In 2007, the companies and foreign banks putting out feelers in Iraq, one of the leading exporters of oil and who faced isolation over the past 20 years due to UN sanctions and wars, the ongoing violence since the U.S. invasion in 2003.
Iraq has signed contracts worth billions of dollars in oil and plans to mega-projects for infrastructure and hopes to diversify its economy, which opens the door to many of the deals with the banks if conditions continue to improve security. But officials say that Iraq first needs to rehabilitate the banking sector which is dominated by seven state-owned banks and about 36 of the small private banks that do not have a major interest to the economy as a whole.
Said Diaa Alckheon Advisor, Ministry of Finance of Iraq Affairs The bank is painful comparison between private banks and global banks in Iraq. He added that the huge difference in performance, size, and deposits.
According to the memo, the central bank has asked the private banks that do not usually have much access to the outside world to increase its capital to 250 billion dinars (214 million dollars) by 2013 to find banks more competitive. Alckheon said he hoped that this procedure forces the banks to find foreign partners.
The peace Sumaisem analyst and member of the Board of Directors of the Iraqi Stock Exchange The foreign investors started to buy shares in banks in Iraq in anticipation of the merger, citing a National Bank of Bahrain, which raised its stake in TBI to 49 percent last June. Sumaisem said it expects the merger between several private banks. And show foreign funds specialized in emerging markets also new interest in the sector.
Said Henrik Cam from AFP. Or. AG Asset Management, which owns shares of a fund for Iraq, "We are interested in the banking sector because it is a good representative of the Iraqi economy. And profits will increase dramatically with the reconstruction of Iraq and the growth of oil revenues." "The banks, which was founded and received a license recently enjoyed a great deal of competitiveness and command the share of the market. We believe that there will be mergers and perhaps a few of them stumble."
Said Daniel Brobbey, investment manager at Silk Invest UK fund management, are among the foreign banks are also beneficiaries of Jordanian banks operating in Iraq, such as Arab Bank, which owns bonds Iraqi and is considering entering the Iraqi Stock Exchange.
According to the CBI got ten foreign banks at least on the licenses in Iraq, mostly from neighboring countries such as Kuwait, Iran, Turkey, Lebanon, Bahrain and Jordan. Among the most prominent examples of Bank of IHS.. Me. C, which is active through the Bank of Dar es Salaam to him.
"Said James Hogan, CEO of IHS.. Me. C - Iraq" with a population of 30 million and expectations of high per capita gross domestic product in the past three to five years represents the Iraqi banking sector attractive opportunities in the medium term and long term. " Hogan said, "There is growing evidence that Iraqi consumers have become more willing - even though it selectively - to deal with private banks."
Said Ziad Makhzoumi Chief Financial Officer of Arabtec, Dubai-based real estate company that think like other companies to enter Iraq. While Iraq is rich in oil but its banks need to be developed. Most of them were state-owned before 2003 is limited only to provide basic services. Bankers say that this has not changed much, although some banks offer credit card services, while many deals being paid by check.
Analysts say that private banks will have to expand their business if it wants to attract foreign partners. So far, only a few banks provide all the services and some emphasize the retail banking and deposits or will not serve only Pmalkin associated companies of the same family. Sumaisem said that these people believe that the project of a family and do not realize that the issue is deeper and that they may play a role.
A senior adviser Qassem harmful CBI that existing loans for a total of 43 banks amounting to 6.8 trillion dinars (5.8 billion dollars) came two-thirds of the state banks. That amount is small when compared to Jordan with a total loan 20 billion dollars in June, while total bank loans in Saudi Arabia, the largest Arab economy 250 billion dollars in June.
The total capital of Credit Bank of Iraq one of the banks own large 100 million dollars, while its assets amounted to 311 million dollars in 2009. The data bank and the Stock Exchange that the paid up capital of National Bank of Kuwait, who owns Credit Bank of Iraq of 1.1 billion dollars, while assets worth 45 billion dollars.
With the continued explosions from time to time the banks are reluctant to establish a network of branches in the country, or electronic systems such as ATMs, while using only 40 percent of Iraqis, local banks with fewer branches than 800 branches in many places, while their money under mattresses beds.
Many prefer the Iraqi government-owned banks, which they knew for a long time while new private banks reluctant to lend in the absence of an effective judicial system is capable of settling disputes. But bankers hope that this will change over time.