An Academic Explains The Reasons For The "Failure" Of Establishing Solid Banking Relationships In Iraq, 25 JAN

 An Academic Explains The Reasons For The "Failure" Of Establishing Solid Banking Relationships In Iraq

 Economy |Yesterday, |  Baghdad Today – Baghdad  Today, Tuesday (January 23, 2024), the academic in economics, Mehdi Saleh, explained the reasons for the “failure” in establishing solid banking relations with the global and regional sector, while pointing to the necessity of developing banks and institutions at the regional level.

The main player   Saleh said in an interview with “Baghdad Today” that “the central bank is the state bank and lending and issuing have important powers at its disposal that made it the main player in establishing monetary policy in Iraq,” pointing out that  “the banking system, with all its civil and governmental titles, is the middle link between the central bank.” And the public,” referring to merchants, companies, and other segments. 

He added,   “The middle circle, referring to the specialized banks, is not sufficiently prepared to establish relationships with the global banking system because it has remained for many decades in local roles, that is,

 it has no experience, in addition to the very developed situation of international banks, especially in the file of industrial and agricultural banks and the rest of the specialized banks.”

 He added, "But this does not mean stopping, but rather striving to develop them, especially since Iraq was the first to establish banks in the region."

 Parasitic performance

He pointed out "the necessity of staying away from the parasitic performance practiced by some banks by seeking speculation and quick profit, hunting for opportunities,

and seeking to transfer the experience of Gulf and Southeast Asian banks in creating visions that contribute to the recovery of markets and building investments, to be the beginning of the move towards  enabling performance in banking work at the level." Regional and international.”

Earlier, Prime Minister Muhammad Shiaa Al-Sudani reviewed to the President of the World Bank Group, Ajay Banga, Iraq’s steps towards financial and banking reform.

On the sidelines of his participation in the Davos Economic Forum, Al-Sudani met with the President of the World Bank Group, Ajay Banga, and discussed with him the cooperation relations between Iraq and the World Bank, in various economic fields, which contribute to supporting the government’s efforts and strategic plans, towards more investment and development opportunities in Iraq.

According to an official government statement received by Baghdad Today.

The statement explained,   “The meeting also witnessed a review of the measures and steps taken by the government and the Central Bank of Iraq, in terms of financial and banking reform, and

the projects financed by the International Finance Corporation (IFC) were also discussed, most notably the project to rehabilitate and develop Baghdad International Airport.”.  The Prime Minister stressed, according to the statement, 

 “the importance of World Bank reports reflecting, realistically, the new government’s policies that were implemented in the economic and banking sectors and supporting the private sector, which aim to diversify the economy,  increase its growth, and  achieve financial stability, in light of the challenges facing the region and the world.” https://baghdadtoday.news/240569-أكاديمي-يوضح-أسباب-فشل-تأسيس-علاقات-مصرفية-رصينة-في-العراق.html