SBDCs Investing In Business Banking Dialogue

Over the last four weeks, Small Business Development Centers (SBDCs) in Babil, Karbala and Najaf held one day Business Banking Forums, bringing together representatives from provincial Banks, Chambers of Commerce, Iraqi Businessmen’s Union, SBDCs, business owners, lawyers and accountants to discuss challenges, constraints and recommendations for expanding banking services for Small and Medium Enterprises in Iraq. The Forums were facilitated by USAID-Tijara Business Development Services and Small & Medium Enterprise Banking staff who also met with participating provincial bank branches from Baghdad Bank, Basra Bank, Iraqi Middle East Investment Bank, North Bank and Gulf Bank.

Najaf Chamber of Commerce Chairman Zohaeer Sharbah addressing the Najaf Business Banking Forum, 18 October.

The Forums provided an opportunity for the Banks to obtain feedback from their business customers on interest rates, application processes and loan underwriting criteria for collateral and guarantors. Many business owners spoke of the need for increased competition among the banks in terms of number of loans written by the banks, reduced interest rates, reduced level of collateral coverage for loans and lending to a wider range of business owners, rather than simply those personally known to the Branch Manager. The banks in turn spoke of additional services they are offering including, credit cards, overdraft coverage, letters of credit, in addition to fixed term loans.

Chamber of Commerce Chairman Sadeeq Hashim opening the Babil Business Banking Forum with Moderator Haidar Hashim, 12 October.

Banks in Babil confirmed their willingness to review with their headquarter offices in Baghdad the potential for the Babil SBDC and Chamber assisting in publicizing banking services, rates and application process to business in the Province and Chamber members. Several SBDCs spoke of an opportunity to further publicize the range of banking services available in their Province and the need for the Iraqi Federation of Chambers of Commerce and the Iraqi Businessmen’s Union to petition for increased lending and easing of loan application processes at the national level with the Iraqi Parliament, Central Bank, Ministry of Finance and the Council of Ministers.

Moderator Dr. Safa Mohammed directs the discussions at the Karbala Business Banking Forum, 28 September.