Baghdad, Feb. 3 (AKnews) - A government economic adviser called the private banks to merge to provide large amounts of capital that can support the banking sector in the country.
Abdul Hussein Al-Anbuge told AKnews that the private banks operating in Iraq are still (family) banks that did not reach the level of the active partnership cash banks in the Iraqi economy.
The Iraqi Ministry of Finance confirmed that more than 90% of private banks in the country operate according to distinct monetary controls, indicating that the Central Bank of Iraq (CBI) has succeeded in developing the private banks during the last period.
"The advancement of the banking reality in Iraq begins through private banks seek to merge and form strong cash banks that have the ability to develop the banking system in the country."
The total capital of Iraqi private banks rose from 30 million in 2004 to one billion and 600 million dollars now, except what is owned by the branches of Arab and foreign banks operating in the country.
"Private Banks have sophisticated and modern monetary and banking means, but the main obstacle that we face is the weak capital, making it unable to cope with government banks."
The Ministry of Finance announced last May forming a committee to develop and organize the work of private banks in the country.
A number of private banks rose from 17 banks in 2004 to 31 banks currently while the number of its branches in Baghdad and other provinces rose from 100 to more than 600 branches to compete in the number and level of services branches of the Rafidain and Rashid Banks.
© AK News 2011
