Print This Page
Email This Link
Email This Page (Web-Based)
Interview with TBI
When was TBI established, and who are the top managers?
The Trade Bank of Iraq (TBI) was established in 2003 as government-owned bank. TBI is led by Mr. Hussein Al-Uzri, Chairman of TBI.
Is TBI a government bank, what makes it different than the other government banks?
Trade Bank of Iraq was initially established to facilitate Iraq’s domestic and international trade dealings in order to meet the pressing need for humanitarian goods and building and reconstruction materials once the U.N. Oil-for-Food Programme ended at the end of 2003.
The purpose of the bank is to be a catalyst for regeneration of the Iraqi economy and banking sector and a force for modernisation.
TBI is a state-owned commercial bank. The Bank’s independence is built into its charter by law. The board is legally bound to make its own decisions.
What are some of the services offered and how many branches do you have?
TBI focuses primarily on trade finance but is also active in project finance. TBI was the first bank to issue Visa credit cards, as well as the development of the first nationwide network of ATMs in the country. The bank will open its eighth branch in Iraq – including the HQ in Bagdad - by the end of 2008.
What are future plans for the bank?
TBI is now entering a third phase of development. Phase one was the establishment of the Bank. Phase two focused on growing the Bank.
After five years in existence and a successful growth, TBI is now entering a new chapter, phase three, which consists of building an institution. This includes strengthening structures and processes, growing the team and the expertise and expanding internationally.
How do you see the progress and future of the banking system in Iraq?
We believe that a strong private banking sector is critical to the progress of the banking system in Iraq.
The role of TBI is to leverage the Iraqi private banking sector. Trade Bank of Iraq is channeling each LC that is below USD 2000000 to the private sector banks this means 70 % of the total LC ‘s will be channelled to the private banks. The below mentioned chart will give more clarification about this specific matter. The below chart shows number of LC’s channelled to the Private Sector Banks until to 31st, August 2008.
International banks should also have a bigger role to play in the future of the banking system in Iraq. At the moment, 12 out of the 33 private banks in Iraq are partially or wholly internationally-owned. After a freeze of the banking sector over the past 44 years due to the nationalizations, war(s) and the sanctions, there is now a plethora of opportunities for these international banks to get involved in. We would like to see them play a more pro-active role.
Anything else you would like to cover?
2007 was yet another record year for TBI, with net profits increasing by more that 250% to reach USD 254 849 531, and our total assets by 100% from 2006 figures to reach USD 5 789 476 543. These figures demonstrate that the Iraqi economy and banking sector are moving in the right direction.
The general economic picture has substantially improved. Inflation has come down from 17% to 12% this year. One can say with confidence that 85% of the Iraqi territory is now stable. Some major steps have been taken into opening the oil sector to international Oil companies. Iraq’s trade volumes continue to grow and the need for infrastructure investment is substantial.
As a bank, TBI continues to make good progress in 2008 and we face the future with confidence as we continue to play an important role in the rebuilding of Iraq and the development of its private sector.
++1.jpg++ Number of LC’s channelled to the Private Sector Banks until 31st, August 2007
++2.jpg++ Trade Bank of Iraq net Profit for 2004, 2005, 2006, and 2007
++3.jpg++ Trade Bank of Iraq Balance sheet for 2004, 2005, 2006, and 2007