FOCUS ON THE BANKING SECTOR, 6 NOV

 FOCUS ON THE BANKING SECTOR

Yasser Al-Mutawali notes these days a growing interest in the banking sector in general, both governmental and private. What does this trend mean? This comes amidst a noticeable shift in attention towards the banking sector, through the government allocating significant time in light of its great responsibilities, which means its awareness that all economic activities, including the implementation of strategic projects and means of encouraging investment, require a solid banking sector to implement its economic programs.

This moral support that this interest constitutes requires taking encouraging steps for banks to perform their role to the fullest extent, represented by laws and procedures that guarantee the banking sector, to push it towards implementing its required development programs.

October of this year witnessed many important meetings between the government and representatives of the banking sector, which discussed the requirements for activating banks. It is noteworthy that the focus was on the process of restructuring Rafidain Bank, which is the first bank in Iraq, on which the government relies to play a developmental role that matches the size of its savings, especially since it is the container for government savings, as well as public savings, which are no less important. The goal is certainly to invest this money and put it into the labor market, in a way that achieves rapid capital turnover, and contributes to creating wide job opportunities, through operating other productive sectors, workshops, factories, etc.

However, this interest was not limited to government banks, but rather extended to the same interest in private banks, through meetings and discussing their needs, whether by the government or the Central Bank of Iraq and trying to overcome challenges.
Among the results of this government movement represented by the interest in the government sector, and in parallel, it was recently announced that the final touches had been completed for the lending strategy, which comes to correct the course of random, non-targeted loans.

This new strategy is expected to activate various important economic sectors, represented by directing loans towards implementing projects with a strategic dimension, which contribute to stimulating the economy and help diversify sources of income as a final product for banks and correcting the structural distortion in the economy and its transition from a rentier economy to a diversified economy.

This is the summary of the objectives behind the increasing government interest in the banking sector, and hence the realization of the importance of the banking sector in achieving sustainable development.

In addition to the readiness to launch the activity of “Riyada” Bank to support small projects within the objectives of providing job opportunities for unemployed youth, as well as providing some market requirements for goods, commodities and products that reduce the import process that absorbs foreign currency.
There is no doubt that launching trading in the third issue of government bonds (Injaz) involves achieving the same reform and development goals, and falls within the government’s interest in the banking sector, which will contribute to their sale and trading.