Exclusive: Iraqi government banks control 88% of banking investments
Shafaq News/ Iraqi government banks
account for 88% of investments in the banking sector, the Financial and
Economic Advisor to the Prime Minister, Mudher Mohammad Saleh, confirmed on
Monday.
Saleh told Shafaq News, "Only
12% of these investments remain with private sector banks."
In its broadest sense, the banking
sector includes all financial intermediaries through which funds flow to
various areas of activity, although traditionally it has been confined to banks
of different types only.
"Market competition
fundamentals are incomplete unless government banks are held to market
standards in terms of efficiency and administrative governance, similar to
international banks," Saleh added.
"The banking sector must be
reformed in line with the government's financial reform agenda, which began
with the reform of government banks."
It is noted that Iraq's seven
government banks are often criticized for their complex administrative
procedures and high interest rates, while the 74 private banks are criticized
for lacking credit facilities.
