Central Bank: open Islamic banking windows of banks, government will raise by 40% of its activity

By Just Hopin Available at: http://theiraqidinar.com/2011/02/20/cbi-open-islamic-banking-windows-of-banks-government-will-raise-by-40-of-its-activity/

Advisor to the Governor signs the Iraqi Central Bank the appearance of Mohammed Saleh, Sunday, to lead the Ministry of Finance to open windows for Islamic banking in the State-owned banks to increase their activity by more than 40%, confirming the central bank sought to pass a law for Islamic banks.

Saleh said in an interview with “the Sumerian News”, “State-owned banks dominate 85% of the activity of banking in Iraq, and therefore, the Ministry of Finance to open windows of an Islamic bank Mesopotamia and the good will raise the activity of banks in Iraq to more than 40%”. “

“The Iraqi government allocated 50 billion dinars to support the Rafidain and good equally to open the windows for Islamic banks which,” noting that “Islamic banks which are based on partnership between the bank and the depositor of his money is a tool that modern banking does not exceed the size and activity of banking in Iraq at the present time more than 20%. “

He said: “There are seven Islamic banks in Iraq among the 40 banks were private sector.”

Saleh pointed out that the “law of Iraqi banks did not distinguish between investment banking and commercial banking where there is no legal basis or a paragraph in the Banking Act regulating the operation of Islamic banks or sets of work, and therefore, the Islamic banks in Iraq exercised pursuant to the usury and the Muslim.”

He revealed that “the Central Bank of Iraq at the present time trying to pass a law for Islamic banks.”

The Ministry of Finance has announced at the end of the month of January of this year from its quest for the opening of an Islamic bank under the Ministry of Finance based bank dropped interest in Mesopotamia and the good ..

Intended to Islamic banks, the banking activity is compatible with Islamic law, where the intervention of interest paid by banks on deposits, or take on loans, in the rule of usury which was forbidden by the Islamic religion, was to establish the first Islamic bank in the Emirate of Dubai in the early seventies of last century, then established many Islamic banks thereafter until it reached about 100 banks in all parts of the world’s most famous and the Faisal Islamic Bank and Dubai Islamic Bank.

The number of Arab and foreign banks made after the issuance of the Banking Act No. 94 of 2004 to get licenses for the establishment of private banks in Iraq, whether by 100%, or in partnership with banks, a local Iraqi, or to open branches to work in Iraq, but security conditions have prevented it , with the exception of some few posts that have been made with a number of national banks.

The CBI, with headquarters in Baghdad, has four branches in Basra and Sulaymaniyah, Irbil and Mosul, and founded the bank independent Iraqi under the law of the Central Bank of Iraq issued on the sixth of March 2004, and is responsible for the maintenance of price stability and the implementation of monetary policy, including policies, prices exchange and management of foreign reserves and the issuance of currency management, as well as to regulate the banking sector.

Regards
ZULKIFLI HASAN