Shafaq News/ Most Iraqi privatebanks still "depend" on the Central Bank of Iraq (CBI) withoutengaging in any economic activity, banking expert Mohamed Salem confirmed onMonday.
Salem told Shafaq News Agency, “Mostprivate banks engage in limited credit activities and do not contributesignificantly to stimulating the Iraqi economy. Their revenue primarily comesfrom currency exchange, relying on electronic trading, hard currency, andelectronic payments. They obtain dollars from the CBI, sell them, and make easyprofits.”
"While private banks havestepped back from offering loans, they have led in electronic trading andproviding services like ATMs and other digital services, areas where governmentbanks have lagged,” he added.
He explained that "privatebanks' services have encouraged employees to localize their salaries, whilegovernment banks, except the Trade Bank of Iraq, have struggled with low salarylocalization."
"Despite their failure to keeppace with international or even private banks, government banks remaintrustworthy in safeguarding depositors' funds, even in the face of challengessuch as the theft and looting they experienced in 2003,” the expert emphasized.