Al-Sudani’s advisor: The banking system in Iraq is rentier par excellence

Shafaq News / Mazhar Mohammed Saleh, economic affairs advisor to Prime Minister Mohammed Shia al-Sudani, described the banking system in Iraq as rentier par excellence on Saturday, noting that this requires a comprehensive reform process.

Saleh told Shafaq News Agency, “The banking system in Iraq is rentier par excellence, regardless of ownership,” noting that it “lives on oil resources and government liquidity directly and indirectly.”

He added that “the banking system derives its activities from government spending, which means that it is a market that lacks banking independence and the movement of desired savings in society from the forces of financial surplus towards desired investments to generate high financing for growth and sustainable development.”

Saleh stressed that “this requires a comprehensive reform process to create market institutions,” indicating that “this enables the banking market to be integrated with the international financial and banking system and become attractive to global banks on a large scale.”

Last Thursday, Prime Minister Mohammed Shia al-Sudani announced the formation of a higher committee to address the work of Iraqi banks in accordance with international financial requirements, while directing private banks to build balanced relations with financial institutions, Arab banks and investors.

Shafaq.com