Source: Dar Al Hayat - 07/07/2009
«Central» Iraqi banks demanding to review the interest rates
Called «the Central Bank of Iraq» Iraqi banks to participate in a symposium organized by the «Association of private banks» in 15 of this month, deals with the foundations set interest rates on credit, after the emergence of signs of the growth of this type of activity (credit) for it.
He attributed the Executive Director of the Association of atrophy of the demand in the market for bank credit, high cost, he said, adding that the results of the banks of the past year, and the results of the second quarter of this year, demonstrate the limitations of credit provided by banks, compared to deposits.
The Chairman of the Board of Directors of the Bank «International Assyrians» depositary Alhandal told «life», that «the proportion of credit to GDP is very low, and below the level of ambition of the sector, despite the high number of Iraqi banks and the foreign workforce, and increase the size of their capital and deposits.
And the hope of increasing by several axes, most notably the abolition of the annual credit plan, which was prepared by the «Central» banks, boards of directors and the granting of freedom to develop a plan credit commensurate with the financial position, and the provision of large loans shared the establishment of a joint stock company is to ensure that bank loans.
So, the Associate Director-General of the Department of banking and credit in the «Central» told «life», the bank kept rates was reflected in the credit liquidity, which stood at some 60 percent, twice the rate required, which means that financial resources are disabled do not have opportunities for credit and investment safe.
He added: «The total capital of 35 banks, which have amounted to some 1.2 billion dollars, but its contribution to the granting of credit does not exceed 22.5 percent of its reservation in this area.