Shafaq News/ Iraqi government banksaccount for 88% of investments in the banking sector, the Financial andEconomic Advisor to the Prime Minister, Mudher Mohammad Saleh, confirmed onMonday.
Saleh told Shafaq News, "Only12% of these investments remain with private sector banks."
In its broadest sense, the bankingsector includes all financial intermediaries through which funds flow tovarious areas of activity, although traditionally it has been confined to banksof different types only.
"Market competitionfundamentals are incomplete unless government banks are held to marketstandards in terms of efficiency and administrative governance, similar tointernational banks," Saleh added.
"The banking sector must bereformed in line with the government's financial reform agenda, which beganwith the reform of government banks."
It is noted that Iraq's sevengovernment banks are often criticized for their complex administrativeprocedures and high interest rates, while the 74 private banks are criticizedfor lacking credit facilities.