"Central Bank Iraq's law of the latter in raising capital for private banks to 250 billion dinars during the period of three years" (mergers accepted by all circles, especially that there is a close link between that and the size of those banks and its ability to provide the best services and banking facilities to the citizens)
June 10, 2010
BANKERS: integration of private banks .. need for banking reform and contribute to economic development
بغداد- الصباح BAGHDAD - morning
Integration with the banking of modern techniques in the formation of large banks and which has become a prominent feature in the economic and banking in the world at the present time, it is clear that for mergers of banks in the world been accepted by all circles, especially that there is a close link between that and the size of those banks and its ability to provide the best services and banking facilities to the citizens.
Says an economic advisor at the Bank of Kurdistan for Investment and Development, Mahmoud Mohamed Mahmoud: The banking mergers between two banking institutions or more lead to the emergence of a large bank has described the new legal and independent of the banks have merged, which is an effective tool in promoting the role of private banks and the civil and the means to activate the economic process through take advantage of the volume of posts in the merged banks, credit operations and financial intermediation and employment in the revitalization of fact, investment and development in Iraq.
And adds to the integration of banking has many advantages, such as that the capital increase of money between banks merged, and thus opening some areas of monetary credit and credit the treaty and does not need to put an increase in the shares or subscription of new shares, as well as increase the confidence of customers dealers bank and increase the confidence of the outside world is also in its ability to fulfill its obligations financial and credit through the remittances sent abroad for customers, as well as the opening credits and the development of human resources and provide the requirements of departments and institutions of the staffs specialized functional and efficient.
Faleh Dawood General Counsel at the Bank of Kurdistan, confirmed that the policy of integration between the private banks are Maihdv
BANKERS: integration of private banks .. need for banking reform and contribute to economic development
بغداد- الصباح BAGHDAD - morning
Integration with the banking of modern techniques in the formation of large banks and which has become a prominent feature in the economic and banking in the world at the present time, it is clear that for mergers of banks in the world been accepted by all circles, especially that there is a close link between that and the size of those banks and its ability to provide the best services and banking facilities to the citizens.
Says an economic advisor at the Bank of Kurdistan for Investment and Development, Mahmoud Mohamed Mahmoud: The banking mergers between two banking institutions or more lead to the emergence of a large bank has described the new legal and independent of the banks have merged, which is an effective tool in promoting the role of private banks and the civil and the means to activate the economic process through take advantage of the volume of posts in the merged banks, credit operations and financial intermediation and employment in the revitalization of fact, investment and development in Iraq.
And adds to the integration of banking has many advantages, such as that the capital increase of money between banks merged, and thus opening some areas of monetary credit and credit the treaty and does not need to put an increase in the shares or subscription of new shares, as well as increase the confidence of customers dealers bank and increase the confidence of the outside world is also in its ability to fulfill its obligations financial and credit through the remittances sent abroad for customers, as well as the opening credits and the development of human resources and provide the requirements of departments and institutions of the staffs specialized functional and efficient.
Faleh Dawood General Counsel at the Bank of Kurdistan, confirmed that the policy of integration between the private banks are Maihdv
The Iraqi Central Bank by approving its law of the latter in raising capital for private banks to 250 billion dinars during the period of three years, which would give the merged banks to reduce the reserve ratio Legal specified period of time, giving them the benefits of significant financial assets of legal reserve by the Central Bank of Iraq, as well as allow for the purchase money orders Khozinip a certain percentage of those reserves, giving preference to banks merged to invest outside the country accounts for Foreign Affairs, an increase of 20% and more of that, along grant the benefits of incentive to invest in other directions and other areas.
And shows that there are other advantages of the merger, including the events of diversification in the loan and investment bank a large one instead of several small banks, and thus control the movement of the financial market and reduce the risks and negative effects, and increase the amount of loans per person as a result of capital increase paid and the reserves after the merger of banks , as well as benefit from the expertise accumulated by the banks merged to the Bank's large, consisting of several small banks, as well as the increase in the number of shares of banks in the stock market and the high value compared with the past, and increase the confidence of customers bank large given the size of the heads of his money, huge.
Abbas al-Bayati, Managing Director of Ashur International Bank believes that the issue of bank mergers if compulsorily between private banks to each other, especially if they are unable to financial ceiling specified by the Central Bank within a period of three years, it definitely will not reap the desired positive results, for example, in If the integration of a bank's capital each and every one of them is around 50 billion dinars in the case of mergers will be capitalized 100 billion dinars, how the remainder will become a 250 billion dinars?
And shows that there are other advantages of the merger, including the events of diversification in the loan and investment bank a large one instead of several small banks, and thus control the movement of the financial market and reduce the risks and negative effects, and increase the amount of loans per person as a result of capital increase paid and the reserves after the merger of banks , as well as benefit from the expertise accumulated by the banks merged to the Bank's large, consisting of several small banks, as well as the increase in the number of shares of banks in the stock market and the high value compared with the past, and increase the confidence of customers bank large given the size of the heads of his money, huge.
Abbas al-Bayati, Managing Director of Ashur International Bank believes that the issue of bank mergers if compulsorily between private banks to each other, especially if they are unable to financial ceiling specified by the Central Bank within a period of three years, it definitely will not reap the desired positive results, for example, in If the integration of a bank's capital each and every one of them is around 50 billion dinars in the case of mergers will be capitalized 100 billion dinars, how the remainder will become a 250 billion dinars?
He adds that the best is the integration of the Bank with a strong bank is relatively weak and are optional, which is called (voluntary amalgamation) it which would reflect the positive results and an increase in the volume of economic growth, the representative of the contingent bank, which makes it able to compete with large banks other and achieve the highest profitability and economic growth, which Maihdv the central bank to him by the recent decision to increase the capital of private banks private.
With due adviser Bank of Kurdistan, Mahmoud Mohamed Mahmoud to talk about the disadvantages of a merger between private banks and deemed by the absence of harmony between the merging parties and the dysfunctional into a state of compatibility between them in the future because of the failure of the merging parties to waive a portion of the rights of the other party, because the private banks in Iraq is expressly banks (family) which are each bank board of directors consists of a certain family, and here are the impossibility of any one integrated concession for the benefit of the other party.
alsabah
With due adviser Bank of Kurdistan, Mahmoud Mohamed Mahmoud to talk about the disadvantages of a merger between private banks and deemed by the absence of harmony between the merging parties and the dysfunctional into a state of compatibility between them in the future because of the failure of the merging parties to waive a portion of the rights of the other party, because the private banks in Iraq is expressly banks (family) which are each bank board of directors consists of a certain family, and here are the impossibility of any one integrated concession for the benefit of the other party.
alsabah
