[ad_1]
Replace 07/12/2022 – 1:12 AM
Economic system Information – translation
The credit standing company, Fitch, steered that the belongings of the Iraqi Islamic banking sector will proceed to develop within the medium time period.
A report by the company issued as we speak, Tuesday (July 5, 2022) and translated by “Al-Iqtisad Information” acknowledged that “the medium to long-term development potential of the Islamic banking sector in Iraq (b-/secure) is optimistic.”
The report thought of that “the Iraqi Islamic banking sector is small, with a market share of 8.1% of the whole belongings of the banking system on the finish of 2021 (2017: 5.3%) and a market share of three.7% of the whole deposits of the banking system (2017: 3%).”
He defined that “the whole belongings of Islamic banks amounted to 12.9 trillion Iraqi dinars (8.8 billion US {dollars}) by the tip of 2021, which represents a big development of 18.2% year-on-year (2020: 9.7%). It exceeded the expansion of the belongings of typical banks in 2021 by 15.1% On an annual foundation (2020: 4.1%), the whole belongings of the Iraqi banking system reached 159.4 trillion Iraqi dinars (US$109.2 billion) on the finish of 2021.
The report identified that “Islamic banks take pleasure in excessive capital ratios – greater than typical banks, though such ranges of capital will be rapidly amortized in such a weak and risky working setting. Islamic banks capital constituted 42.2% of the whole capital of the banking sector. Iraq on the finish of 2021, regardless of a a lot smaller market share of belongings than typical banks.”
He identified that “Iraq’s share of world Islamic banking belongings is small at 0.4% on the finish of the third quarter of 2020 and was decrease than neighboring Jordan (0.7%) and Oman (0.7%), in accordance with the Islamic Monetary Companies Board (IFSB), primarily as a result of Working setting. 30 out of 76 Iraqi banks have been Islamic in 2021, consisting of 1 state-owned financial institution and 29 personal banks.
He cautioned that “key points within the banking trade embrace a troublesome working setting, political instability, restricted lending alternatives, lack of complete rules governing the trade, weak enforcement of economic rules, reporting and transparency points (contributing to distrust within the banking system), and laundering. Cash issues and unskilled human capital.
The report recognized challenges particular to Islamic banking with “poor consciousness of Islamic merchandise, lack of standardization, restricted product vary, and lack of Islamic liquidity administration instruments. Some Iraqi banks function largely as treasury capabilities, spreading extra liquidity to CBI positions with There aren’t any actual banking enterprise fashions.
https://economy-news.web/content material.php?id=28785
[ad_2]
Source link