Insecurity, bad services cause weak banking performance-expert

BAGHDAD/IraqiNews.com Iraqi financial expert on Friday said insecurity and lack of services have brought up weak banking performance. “In spite of relative security improvement, it did not provide convenient environment for prospering economic and financial activities nor it reduced high inflation rates,” financial expert Majid al-Suri. “High inflation increased services costs in a time basic utilities, such as, electricity, communication transport were expensive,” he added. The expert attributed a part of the crisis to the psychology of Iraqis, noting “Iraqis have poor banking education and weak banking performance along with liquidity and credit risks concerns”. “Poor services delivered by banks and weak modern technology machines in administering banking works had its toll on the performance,” the expert stressed. He said “due to the debt overhang and attachment risk on assets by creditors, public sector banks are still unable to perform international banking”. Iraq has two public sector banks, including Rafidain and Rasheed banks, which jointly have around two million accounts/deposits and encompass 85 per cent of the Iraqi banking sector assets. The expert referred to the fact that Iraqi central bank measures to maintain the stability of the market “made it received the ensuing losses and brought in stagnant markets” “The measures created weak commercial dealing and putt off investors against depositing in banks along with rampant corruption running deep inside government offices”. AM(S) 1