Sunday, March 20th 2011Iraqi parliament to regulate banking system
Baghdad, The Economic Commission in the Iraqi parliament said Sunday that it plans to legislate a law to organize the work of government and private banks in the country.
Abdul Hussein Abtan, the member of the commission told AKnews that the law will also provide legislature cover for the banks to develop their financial work in the country without affecting the economy.
"Iraq needs a law to organize the work of banks in line with its need for financial and economic development, and the banks should not be established randomly because this will weaken the banking sector in the country."
The Iraqi Central Bank (ICB) assured on February 2 that six of the government and private banks began using the electronic system.
The International Bank allocated 10 million $ to restructure state banks and activate the electronic dealings.
The Iraqi banks restructuring unit announced earlier about the extension of banks unity for a period of one year because of security concerns.
Iraq had decided in early 2006 to restructure banks in order to get rid of heavy debts while the Finance Ministry announced about its quest over the next year to develop an integrated plan to develop e-government banks and activate financial relations in this aspect.
The financial transactions in the Iraqi government are still limited to government banks by 85%.
The Finance Ministry called earlier the ICB to take strict procedures in granting licenses for establishing private banks.
http://www.aknews.com/en/aknews/2/226458/
