Trade Bank of Iraq
Encyclopedia
Trade Bank of Iraq is a publicly owned bank
headquartered in Baghdad
, Iraq
.
Paul Bremer, originally to finance trade deals and replace the oil for food program.
TBI is owned by the Iraqi government itself but operates as a commercial bank with a virtual monopoly on letters of credit for government purchases, giving it immense political leverage over the Iraqi government.
Its chairman was a nephew of well-known Iraqi politician Ahmed Chalabi
. Hussein Al Uzri
(Arabic: حسين عصام الازري) was appointed by Bremer and kept the position under successive Iraqi administrations. Al Uzri is the founder and first Chairman of Board of directors and President of the Trade Bank of Iraq, until his unwarranted summary dismissal on 2nd June 2011. He is the Grandson of Abdul Amir Al Uzri, an Iraqi politician in 1950 when Iraq was a kingdom, who served as a minister several times and as an ambassador to Iran. In June 2011, Reuters reported that the Iraqi government issued an arrest warrant for Al Uzri, stemming from an investigation at the Trade Bank [1]. (Reuters article on arrest warrant)
In June 2011, Reuters reported that Al Uzri was named in an arrest warrant by Iraqi authorities. As yet no details of the allegations for the dismissal, or supporting evidence, have been presented.
Many inside and outside Iraq believe that this action is politically motivated. A British adviser to the bank's board, Sir Claude Hankes, condemned the move by Prime Minister Nuri al-Maliki's government as "political skulduggery". He said the bank had resisted efforts by members of the government to try to make it undertake "improper banking transactions".
During Hussein Al-Uzri’s stewardship, the bank grew from nothing to be the largest bank in Iraq. It now has international banking relationships with a total of 134 banks in 39 countries who have together provided TBI with substantial lines of credit. These banks include JP Morgan, Deutsche Bank and Standard Chartered. TBI has been audited by leading western firms from foundation, Ernst & Young for the first five years and then PricewaterhouseCoopers, who gave an unqualified report for 2010.
The bank, which is wholly owned by the Iraqi Ministry of Finance, was established in July 2003 to facilitate Iraq's international trade and the reconstruction of the country after the expiration of the UN Oil-for-Food Programme
. Although the bank is state-owned it functions as a commercial bank.
The bank claims that an early success was signing agreements with 17 of the largest Export Credit Agencies
around the world. Another was the fact that TBI was one of the first Iraqi banks to receive lines of credit from major international financial institutions.
TBI says it has a sound credit policy in place, and among the many other 'firsts' the bank can claim is the introduction of Iraq's first fully automated online banking system, being the first Iraqi bank to issue VISA credit card
s, and the development of the first nationwide network of ATMs
in the country. TBI is also the most experienced Iraqi bank in the issuance of Letters of Credit
and Letters of Guarantee
.
TBI says it is now introducing modern, innovative products and services to the Iraqi market. These include Project Finance
, Salary
Account
s, Saving Accounts, and Credit Card
s.
In July 2007, TBI appointed British Adviser Sir Claude Hankes KCVO as an advisor to the bank.
and Basra
and Najaf
, Arbil
and Sulaimaniya. The bank is now completing the remaining branches, which will cover all governorates of Iraq.
Bank
A bank is a financial institution that serves as a financial intermediary. The term "bank" may refer to one of several related types of entities:...
headquartered in Baghdad
Baghdad
Baghdad is the capital of Iraq, as well as the coterminous Baghdad Governorate. The population of Baghdad in 2011 is approximately 7,216,040...
, Iraq
Iraq
Iraq ; officially the Republic of Iraq is a country in Western Asia spanning most of the northwestern end of the Zagros mountain range, the eastern part of the Syrian Desert and the northern part of the Arabian Desert....
.
History
The Trade Bank of Iraq was established in 2003 by the U.S. Administrator to IraqIraq
Iraq ; officially the Republic of Iraq is a country in Western Asia spanning most of the northwestern end of the Zagros mountain range, the eastern part of the Syrian Desert and the northern part of the Arabian Desert....
Paul Bremer, originally to finance trade deals and replace the oil for food program.
TBI is owned by the Iraqi government itself but operates as a commercial bank with a virtual monopoly on letters of credit for government purchases, giving it immense political leverage over the Iraqi government.
Its chairman was a nephew of well-known Iraqi politician Ahmed Chalabi
Ahmed Chalabi
Ahmed Abdel Hadi Chalabi is an Iraqi politician. He was interim oil minister in Iraq in April-May 2005 and December-January 2006 and deputy prime minister from May 2005 until May 2006. Chalabi failed to win a seat in parliament in the December 2005 elections, and when the new Iraqi cabinet was...
. Hussein Al Uzri
Hussein Al Uzri
Hussein Isam Al Uzri is the founder and was the Chairman of Board of directors and President of the Trade Bank of Iraq, until he fled from Iraq in June 2011 to avoid being taken into custody during an Iraqi government investigation into alleged violations...
(Arabic: حسين عصام الازري) was appointed by Bremer and kept the position under successive Iraqi administrations. Al Uzri is the founder and first Chairman of Board of directors and President of the Trade Bank of Iraq, until his unwarranted summary dismissal on 2nd June 2011. He is the Grandson of Abdul Amir Al Uzri, an Iraqi politician in 1950 when Iraq was a kingdom, who served as a minister several times and as an ambassador to Iran. In June 2011, Reuters reported that the Iraqi government issued an arrest warrant for Al Uzri, stemming from an investigation at the Trade Bank [1]. (Reuters article on arrest warrant)
In June 2011, Reuters reported that Al Uzri was named in an arrest warrant by Iraqi authorities. As yet no details of the allegations for the dismissal, or supporting evidence, have been presented.
Many inside and outside Iraq believe that this action is politically motivated. A British adviser to the bank's board, Sir Claude Hankes, condemned the move by Prime Minister Nuri al-Maliki's government as "political skulduggery". He said the bank had resisted efforts by members of the government to try to make it undertake "improper banking transactions".
During Hussein Al-Uzri’s stewardship, the bank grew from nothing to be the largest bank in Iraq. It now has international banking relationships with a total of 134 banks in 39 countries who have together provided TBI with substantial lines of credit. These banks include JP Morgan, Deutsche Bank and Standard Chartered. TBI has been audited by leading western firms from foundation, Ernst & Young for the first five years and then PricewaterhouseCoopers, who gave an unqualified report for 2010.
The bank, which is wholly owned by the Iraqi Ministry of Finance, was established in July 2003 to facilitate Iraq's international trade and the reconstruction of the country after the expiration of the UN Oil-for-Food Programme
Oil-for-Food Programme
The Oil-for-Food Programme , established by the United Nations in 1995 was established with the stated intent to allow Iraq to sell oil on the world market in exchange for food, medicine, and other humanitarian needs for ordinary Iraqi citizens without allowing Iraq to boost its military...
. Although the bank is state-owned it functions as a commercial bank.
The bank claims that an early success was signing agreements with 17 of the largest Export Credit Agencies
Export Credit Agencies
An export credit agency or Investment Insurance Agency, is a private or quasi-governmental institution that act as an intermediary between national governments and exporters to issue export financing...
around the world. Another was the fact that TBI was one of the first Iraqi banks to receive lines of credit from major international financial institutions.
TBI says it has a sound credit policy in place, and among the many other 'firsts' the bank can claim is the introduction of Iraq's first fully automated online banking system, being the first Iraqi bank to issue VISA credit card
Credit card
A credit card is a small plastic card issued to users as a system of payment. It allows its holder to buy goods and services based on the holder's promise to pay for these goods and services...
s, and the development of the first nationwide network of ATMs
Automated teller machine
An automated teller machine or automatic teller machine, also known as a Cashpoint , cash machine or sometimes a hole in the wall in British English, is a computerised telecommunications device that provides the clients of a financial institution with access to financial transactions in a public...
in the country. TBI is also the most experienced Iraqi bank in the issuance of Letters of Credit
Letter of credit
A standard, commercial letter of credit is a document issued mostly by a financial institution, used primarily in trade finance, which usually provides an irrevocable payment undertaking....
and Letters of Guarantee
Demand guarantee
In English writings, traditionally the term “guarantee” denotes an accessory or “conditional” type of obligation. The essence of the instrument is the promise to answer for the duty of another should the other default. The beneficiary of such a promise will not be entitled to payment unless it can...
.
TBI says it is now introducing modern, innovative products and services to the Iraqi market. These include Project Finance
Project finance
Project finance is the long term financing of infrastructure and industrial projects based upon the projected cash flows of the project rather than the balance sheets of the project sponsors...
, Salary
Salary
A salary is a form of periodic payment from an employer to an employee, which may be specified in an employment contract. It is contrasted with piece wages, where each job, hour or other unit is paid separately, rather than on a periodic basis....
Account
Deposit account
A deposit account is a current account, savings account, or other type of bank account, at a banking institution that allows money to be deposited and withdrawn by the account holder. These transactions are recorded on the bank's books, and the resulting balance is recorded as a liability for the...
s, Saving Accounts, and Credit Card
Credit card
A credit card is a small plastic card issued to users as a system of payment. It allows its holder to buy goods and services based on the holder's promise to pay for these goods and services...
s.
In July 2007, TBI appointed British Adviser Sir Claude Hankes KCVO as an advisor to the bank.
Branches of the Bank
TBI has 9 branches distributed on the capital, BaghdadBaghdad
Baghdad is the capital of Iraq, as well as the coterminous Baghdad Governorate. The population of Baghdad in 2011 is approximately 7,216,040...
and Basra
Basra
Basra is the capital of Basra Governorate, in southern Iraq near Kuwait and Iran. It had an estimated population of two million as of 2009...
and Najaf
Najaf
Najaf is a city in Iraq about 160 km south of Baghdad. Its estimated population in 2008 is 560,000 people. It is the capital of Najaf Governorate...
, Arbil
Arbil
Arbil / Hewlêr is the fourth largest city in Iraq after Baghdad, Basra and Mosul...
and Sulaimaniya. The bank is now completing the remaining branches, which will cover all governorates of Iraq.