Shafaq News/ Iraqi government banks account for 88% of investments in the banking sector, the Financial and Economic Advisor to the Prime Minister, Mudher Mohammad Saleh, confirmed on Monday.

Saleh told Shafaq News, "Only 12% of these investments remain with private sector banks."

In its broadest sense, the banking sector includes all financial intermediaries through which funds flow to various areas of activity, although traditionally it has been confined to banks of different types only.

"Market competition fundamentals are incomplete unless government banks are held to market standards in terms of efficiency and administrative governance, similar to international banks," Saleh added.

"The banking sector must be reformed in line with the government's financial reform agenda, which began with the reform of government banks."

It is noted that Iraq's seven government banks are often criticized for their complex administrative procedures and high interest rates, while the 74 private banks are criticized for lacking credit facilities.