Minyanville.com – 12 hours ago
Minyanville.com – 12 hours ago
24/07/2013 (00:01 pm) – The number of readings: 163 – Issue (2851)
BAGHDAD / Adel Saffar
See financial experts and bankers that the poor efficiency of local banks and not keep abreast of developments witnessed by the banking sector in the world to make way for international banks to open branches in the country, as revealed announcement bank Citigroup and American Standard Chartered,
the British period, the last few years their intention to expand into the Iraqi market, what تختزنه Last of the great potential of the banking sector in this country, is that the experiences of some foreign banks in Iraq calls for caution to avoid some of the problems.
A member of the Finance Committee in the House of Representatives Najiba Najib, said that "the country’s dependence on banks balance and with a global reputation, gives confidence to the big companies and paid for the work and investment,
noting that after the withdrawal of Iraq from Chapter VII note there are a lot of companies and international banks seeking to have branches in Iraq to take advantage of the budget big country and they find themselves can achieve huge profits.
said in her speech to the range, contrast, we need to support our sector banking entry through banks sober high reputation in terms of competence and experience to give it a motivation for investment companies to operate in the country better , "indicating that" it would strengthen the banking sector in Iraq and gives confidence to the major scientist to work and invest in the country.
She explained, "We can not rely on our banks because they do not continue to suffer from delays and inefficiency of the country is need of development in all economic fields.
For his part, banking expert Abdul Aziz Hassoun that the entry of these banks, investment market Iraqi impacts major economic plus it emphasizes the inefficiency of our banks.
Said in a statement to the extent: that the local banks in Iraq are suffering from problems and disorders due to delays and inefficiency in some joints of its " he said, adding "It was better during the last period that the development of its business and strengthen their financial and communications and beyond vulnerability and underdevelopment from which they suffer.
And characterized the Iraqi market by low number of citizens who have bank accounts, allowing the banks a substantial margin to attract thousands of customers, particularly that the Iraqis are looking for a complete package of services ranging from current accounts to insurance services and mortgages, which are services not in the Iraqi market offers many them.
However, the Iraqi banking sector suffers from obsolescence legislation governing him and the dominance of state-owned banks and poor infrastructure and a large number of obstacles that make the exercise of banking activity is not easy at all.
He says a Western diplomat who asked not to be disclosed, "Iraq has the qualifications too large for the exercise of banking activity," he said, refers مايانك owner branch manager of Citigroup in Jordan and Iraq that the bank sees in the Iraqi market a great opportunity, as it seeks to take advantage of the benefits issued foreign banks will enter into the country.
The focus of Bank of America at the beginning of it to serve its customers browsing in Iraq, such as international oil companies operating in the oil sector south of the country, and in the long run will seek Citigroup to enter the field of commercial banking and retail (ie private individuals), but it did not announce a timetable for these steps .
Citigroup economists expect that the volume of Iraq’s economy by 2050, two trillion dollars, which exceeds the current size of 15 times, roughly equivalent to the size of the Indian economy now
And builds bank U.S. policy on upbeat outlook for Iraq, where he is expected economists they are working to become the number of Iraqis in 2050, some fifty million people and the economy of approximately size two trillion dollars, and the figure represents the last 15 times the value of the Iraqi economy now, and roughly equivalent to the size of the Indian economy at the moment.
With the development of the banking sector in the future there is a need for all well-known banking services in Iraq, where the limited proportion of citizens have access to loans and insurance, credit cards, mortgages and other financial products.
Despite the tone of optimism in an interview with the owner, there are major obstacles to the banking business in Iraq, before the announcement, Citigroup last month its intention to extend its activities to the country, the Bank of HSBC British had announced days earlier for selling its stake in Bank of Dar es Salaam in Iraq, The 70% share.
And talks, diplomats and analysts for a number of major difficulties in the Iraqi banking sector, including the absence of modern legislation to pay Iraqis to confidence in the financial sector, and the banks are government Rasheed Bank and Rafidain banks dominate the field, which will reduce the incentive to innovate.
According to estimates by the World Bank did not exceed the size of the loans sector in Iraq 10% of GDP in 2010, while the ratio stood at 55% in the rest of the Middle East
7-23-13 TD: Now today’s articles CLEARLY spoke of them NOT being ready to Delete the Zeros (For the last time: FROM THE NOTES THEMSELVES!!) until the new fiscal year 2014 and so the only viable option on the table is they start the float. This part of the story is the FULL TRUTH. Anyone who is a Doubting Thomas from this point on is I’m sorry to tell you but you are living in a state of delusion. Now : wannabe dollar millionaires, your dreams are once & for all shattered but you should be dancing for joy at the prospect of a float because in this manner you have the potential of seeing ROI of better than the 10% – 35% ROI which is the strategy they had in mind up to now.
by Andy Peters
JUN 24, 2013 8:20am ET
Receiving Wide Coverage …
Central Banks Warn Private Sector to Act: The world’s central banks have done their job; now it’s time for political leaders to do theirs. That’s the message delivered by the Bank for International Settlements, colloquially known as the central bankers’ bank, in the wake of Federal Reserve Chairman Ben Bernanke’s comments that the Fed may slow its bond-buying program later this year. "Cheap and plentiful central bank money had merely bought time," the BIS said in its annual report, and additional stimulus will only make it more difficult for the global economy to return to health, the FT reported. Two leaders of the BIS, whose members include the Federal Reserve Board and the European Central Bank, said that "returning to stability and prosperity is a shared responsibility" and the "The balance between costs and benefits is deteriorating," the Times noted. The most dangerous aspect of the efforts of central banks is that it deludes the private sector from making its own reforms, with a BIS executive saying "low interest rates and unconventional monetary policies have made it easy for the private sector to postpone deleveraging," the Journal reported. Financial Times, New York Times, Wall Street Journal
Citi to Open Office in Iraq: Iraq continues to experience outbursts of violence, but that’s not stopping Citigroup from opening an office in Baghdad—the first U.S. bank to have a physical presence there. The Citi executive tapped to run the office, Dennis Flannery, hopes "some of the political and security issues might be abated" in Iraq, the Journal reported. Both the FT and the Journal note Iraq’s oil riches and the allure for banks; Citi projects Iraq to become a $2 trillion economy by 2050, the FT says. Wall Street Journal, Financial Times
Wall Street Journal
A group of large banks submitted to federal regulators last month their favored method for how to deal with another Lehman Brothers-esque failure—bondholder bail-ins. Bank of America, Citigroup, Wells Fargo, "other banks" and the Clearing House trade group attended a private meeting with the Fed on May 22, when the plan was submitted. Bail-ins put the onus on bondholders, not taxpayers. Those banks said they would be willing to hold "combined debt and equity equal to 14% of their risk-weighted assets," the Journal reported, citing unnamed sources. The banks think that if they support the bail-in concept, they will be throwing a bone to regulators who "have been calling for banks to hold a minimum amount of long-term debt," the paper explains. The banks’ preferred plan would pre-empt regulators’ ordering them to hold more long-term debt. No word yet if the regulators like the plan.
Bernanke must hang tough with plans to start scaling back bond purchases, despite loud and persistent whining from the markets, the Journal‘s Heard on the Street column opines. "Failing to do so could set it up for even greater difficulties engineering an exit at some later point," the article says.
Officials with the U.S. Department of Education are probing possible student-loan scams, with alleged incidents of applicants taking federal loans and grants to use at three or more schools in a year, the Journal reports. The story notes that "most federal student aid requires no credit check and comes with few restrictions on how the money is spent."
The FT reported findings from a study of bank executives’ pay, co-authored with the private firm Equilar, including this one: average pay "fell by a tenth last year" to $11.5 million. The paper cites well-known reasons for the pay drop, including Chase’s London Whale incident, and shareholder unrest.
US dollar rises in Asian trading – Economic Times
Dollar falls in low trade on Richmond Fed surprise – MarketWatch
Iraq representative to ring closing bell at New York Stock Exchange (NYSE) today, Wednesday, July 24, 2013 at 4pm EST.
watch UN video beginning at 5:19 point for announcement!