Private Banking in Arab Countries and Market Liberlization Bashar H. Malkawi
Private Banking in Arab Countries and Market Liberlization
The banking and financial sectors play important role in the economy of any country. When Arab countries join the WTO or open their economies, there are several risks. For example, opening the fragile Iraqi banking system, where lending to the private sector made up one-half of 1 percent total commercial bank assets lending in 2015, would create a regime more favorable to meg-foreign banks.Iraqi banks may not have enough capitalization to compete with foreign banks.
Syria has taken several steps on the path of economic reform. These include increased imports, such as vehicles, and permitting the private sector to venture into such fields as banking, telecoms, TV production, and higher education. In the context of these reform initiatives, Syria applied for WTO membership in October 2001.
In its accession to the WTO, Jordan scheduled several commitments that cover areas such as life and non-life insurance services (e.g. transport, aviation, and accident insurance) and banking and other financial services (e.g. derivative trading and the provision and transfer of financial information).There are no limitations on the number of service suppliers in the form of quotas, exclusive providers, or economic needs tests, local currency lending restrictions, restrictions on geographical expansion, and capital requirements. Jordan has, however, imposed several restrictions such as the type of establishment allowed.Therefore, suppliers do not have the freedom to choose a preferred form of commercial presence whether a branch, subsidiary, or joint venture.
Adjustements to the global economy and opening markets should be gradual and done in structural manner so as to protect private local entrepreneurs and businesses. Bashar H. Malkawi
The banking and financial sectors play important role in the economy of any country. When Arab countries join the WTO or open their economies, there are several risks. For example, opening the fragile Iraqi banking system, where lending to the private sector made up one-half of 1 percent total commercial bank assets lending in 2015, would create a regime more favorable to meg-foreign banks.Iraqi banks may not have enough capitalization to compete with foreign banks.
Syria has taken several steps on the path of economic reform. These include increased imports, such as vehicles, and permitting the private sector to venture into such fields as banking, telecoms, TV production, and higher education. In the context of these reform initiatives, Syria applied for WTO membership in October 2001.
In its accession to the WTO, Jordan scheduled several commitments that cover areas such as life and non-life insurance services (e.g. transport, aviation, and accident insurance) and banking and other financial services (e.g. derivative trading and the provision and transfer of financial information).There are no limitations on the number of service suppliers in the form of quotas, exclusive providers, or economic needs tests, local currency lending restrictions, restrictions on geographical expansion, and capital requirements. Jordan has, however, imposed several restrictions such as the type of establishment allowed.Therefore, suppliers do not have the freedom to choose a preferred form of commercial presence whether a branch, subsidiary, or joint venture.
Adjustements to the global economy and opening markets should be gradual and done in structural manner so as to protect private local entrepreneurs and businesses. Bashar H. Malkawi
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