Adviser To The Prime Minister: We Are Heading Towards Reforming The Government Banking Sector, 2 AUGUST

 Economical 08/01/2024  Baghdad: the mainstay of the emirate  The Financial Advisor to the Prime Minister, Dr. Mazhar Muhammad Saleh, stated that

 
reforming the banking system is one of the most prominent priorities of the government’s approach, because of its positive effects in all aspects of the economy, indicating that the
 
first steps of that reform began through the government banking sector,
 
     which currently dominates more than Of 85 percent of the assets of the banking system, its
 
     banking operations and activities account for approximately the same percentage of total deposits and credit.
 
Earlier, Prime Minister Muhammad Shiaa Al-Sudani chaired a special meeting to develop the work of government banks, and directed to resolve the procedures for developing the work of Rafidain Bank.
 
The Prime Minister's Media Office said that Al-Sudani was briefed during the meeting, which was attended by representatives of Ernst & Young for auditing and financial consulting, on the technical and administrative procedures for the Rafidain Bank development project, which were taken during the period that followed the signing of the contract with the company specialized in structuring and developing work in the banking sector.
 
It is noteworthy that the development plan of Rafidain Bank includes a comprehensive review and evaluation of the bank’s work, and the implementation of structural administrative reforms, aiming to provide a package of integrated banking services to citizens and companies, in which advanced electronic programs and modern technology are adopted in all banking transactions, and the optimal use of human and technical resources, and the transition to... Automated work, which helps the bank’s ability to meet banking requirements Globalism.  Counselor Saleh told “Al-Sabah”:

“The government’s vision for economic reform was largely focused on banking reform, which is one of the priorities of the government curriculum, and the first steps began through the Rafidain Bank,” noting that
 
“the reform principles upon which the government program was founded and which the House of Representatives approved are based on On regular executive priorities, at the forefront of which is reforming the banking sector, as the Prime Minister’s vision was focused on economic reform through reforming the government banking sector, which currently dominates more than  85 percent of the assets of the banking system, and its banking operations and activities account for approximately the same percentage of total deposits and credit. "The banker." 
 
Saleh pointed out that this beginning came because these banks are large and important, but
 
they are burdened with a legacy left by the conflicts of the past half century and their repercussions on the efficiency of this large banking system, whose capital base still constitutes only a low percentage that does not exceed 22 percent of the total capital of the banking system, indicating that
 
“In view of this banking dominance, which is burdened with inherited problems, our country suffers from limited growth in the activity of the banking market and its division between private banks, the number of which exceeds more than 50 banks, but
 
they are limited in their activity in deposits and credit, but
 
they do not have a unified and homogeneous competitive banking market with government banks, as they dominate
 
“Governmental banks are in great pain in their market shares and in their banking activity, and
 
they live in their activity on sovereign banking liquidity, as
 
they are banks of a purely rentier nature that deal with large government deposits that affect their liquidity.”  The government advisor explained,
 
“In order to advance the Iraqi banking market, the
 
first reform steps have inevitably begun with government banks, especially major commercial banks such as Al-Rafidain Bank, and
 
based on the above, with the aim of making government banks operate in accordance with capital efficiency standards and lead financing and development activity in the country and with competitive foundations that provide Financial inclusion

At the same time, the study, which is being prepared by the international auditing and accounting firm Ernst Young, is based on the principle of creating a highly efficient government commercial banking sector that takes the lead with the rest of the banking market in financing market activity and with digital foundations and financial and accounting technologies in accordance with modern financial engineering.  He pointed out that
 
this leads to the
 
birth of a government bank that
 
     specializes in managing government banking operations exclusively and
     is considered a cornerstone in organizing the treasury account and stabilizing government cash flow budgets, meaning that
     it will at the same time be the public finance arm of the government banking organization.  Saleh believes that
 
these steps can achieve the
 
goals that lead to “the birth of a homogeneous banking market that
 
     operates according to competitive principles and can
     integrate with the local and international financial and banking system with
     high credit and banking efficiency required by the sustainable development goals and the
     requirements of the availability of market institutions and their
     integration between financing services on the one hand and real investment.” And production growth on the one hand Other.      https://alsabaah.iq/100342-.html