Central Bank called by private banks and the latter calls for new legislation
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.
(I think this is talking about the CBI banking law Article 28, see page 24-25 of the PDF, references prohibeted activities)
http://www.cbi.iq/documents/banking_law_f.pdf
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."
(another committe, great, wonder how long that will take)
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. "
