Finance - Banking
of the larger private sector banks provide the following products and services: • Local and foreign currency accounts – Iraqi dinar, US dollar, Euro and a host of other currencies • Transfer of funds within Iraq – paper based and electronic transfer • Inward and outward cross border payments – same day processing capability • Trade finance – import and export financing through both Letter of Credit and Open Account • Payroll – processing of salary payments for employees • Treasury and foreign exchange – buying and selling of Iraqi dinar against other currencies • Lending – short and longer term financing • Leasing – cars and other consumer products • Mortgage – property financing • Insurance – distribution of life and non life insurance products • Stockbroking – purchase and sale of shares listed on the Iraq Stock Exchange Some banks already support the above products through a variety of delivery channels such as telephone, ATM and internet.
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In the not too distant future, as the industry matures, other retail and wholesale banking products will also become available. Corporate borrowers will also benefit from the establishment of a syndicated lending market, where banks jointly support a single borrower and effectively share the risk. Such initiatives require the
close collaboration and cooperation of banks. But this trend is already starting to emerge to the benefit of the wider banking industry – another example of such collaboration will become evident through the development of interbank foreign exchange or lending markets (which do not currently exist). To conclude, the industry holds considerable potential but is not for the faint hearted. Various challenges and risks remain. However, just as the private sector banks have evolved over the past one to two years, it is likely this speed of change will continue and allow the banking industry to play an ever increasing role in Iraqi economic development. The Head Office of Dar Es Salaam Investment Bank. Located in central Baghdad