What if the global financial institutions will work together only to develop the banking sector of Iraq? What could be the possibilities for Iraq banks? Will there be extreme change to be anticipated this 2012?
When the Association of Iraqi private banks with the cooperation of International Finance Corporation organized Alfrshhaoha Banking Conference in Arbil, 48 representatives from different private banks were constrained to huddle together.
There were two major concerns that were seriously tackled:
1. Ports to handle International banks.
The first one was about the opening of ports. These ports were discussed to manage the outside given the fact that International banks have been in the circulation that (seemingly) empowered Iraqi banks. Well, international banks (289 banks to be specific) surely have empowered Iraq as they have been across the 92 countries.
Just imagine if Iraq will be able to send open letters of credit to these institutions. It would mean that 200+ of financial institutions to grant admirable possibilities to the Iraq banking sector. How’s that?
2. International banks could be contributors to raise capital for Iraq’s financial institutions.
Iraqi officials saw the remarkable possibilities of what might happen if 289 banks were to take part of investing for Iraqi banks. During the conference, the team of Alkhbraalmsúlan in the Middle East, Europe and the Near East, supplied reliable analyses on the said possibilities in different fields, facilities and necessary requirements needed. One could already imagine the surpassing support that Iraq’s banking system might receive if these analyses were to be successfully implemented. In simple terms, International banks will not only provide support but also can provide global assistance for the expansion of Iraqi market to the rest of the globe.
So, this means that Iraq should learn how to effectively deal with the International institutions as the country could not afford any more losses. Although these huge size institutions could become great assets, Iraqi bank experts know that mistakes should not be involved otherwise; these will bring great harm to the economy. As huge as this opportunity could lead to tremendous economic develop so can it bring tragic effect if not properly organized, planned and implemented.
However, whatever the risks might be, Finance Committee MP of Kurdish Coalition blocs, Ahmed Hassan Faizullah affirmed that Iraqi banks will have more effective clearing electronic system for all the banks in Iraq.
“Clearing System Electronic is one of the modern technologies in the work of banks, and entered the banking sector of Iraq means that he has started moving towards the technological development of the modern world… Iraqi banks need techniques technological and electronic systems in their work to facilitate their work and raise their efficiency and speed in completing the banking transactions in relation to citizens, calling for training the cadres of staff in banks and broadcast awareness programs to the citizens to know how to deal with modern technology for banks.” Faizullah said during an interview on Agency News last May 21, 2012.
As determined as Iraq may seem, CBI already decided to cover 32 of its banks thru electronic clearing – this will definitely take some time. So, what does this mean for speculators? How would this affect the current situation of the country? Will this give positive inclination to an investor’s dream called RV?
However, we could not get rid of worst case scenarios. There might always be great risks and sacrifices required from the officials or the country’s reserves. What we only know for now is that the Alfrshhaoha Banking Conference held was successful. 48 representatives from Iraq banks is not to be taken lightly though.
Written by DrDinar for Iraq Bank information.
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