Banking expert: There are fears of declining confidence in banks own

Banking expert: There are fears of declining confidence in banks own

11-06-2017 11:26 AM

called on the banking and academic expert Essam Mahouelle to restore confidence in banks and private action to address the problems faced as a result of the weakness of the confidence of depositors, which requires activating its role in the banking diversified activity, especially in the investment and development areas, making them able to attract deposits of citizens in the form of making them far means of promotion to invest their money in non - Iraqi banks, and specifically Iranian.

He Mahouelle in a newspaper interview that «some non-Iraqi banks give interest on the amounts deposited with, higher than those granted by Iraqi banks, what tempt Iraqi citizens to deposit their money with». He said that «the Iraqi private banking sector needs to provide the necessary protection by securing greater confidence of Iraqi citizens sector and encourage them to invest in it.»

Mahouelle pointed out that «the weakness of confidence in the sector of the Iraqi banking pay a lot of owners of money and investors to invest their money in neighboring countries, which is characterized by the stability of the financial situation and give banks great facilities to depositors have, what Iraqi money transfers ratio increased to them, especially Jordan, despite the dangers of this phenomenon on the Iraqi economy, which requires the concerned lesson any concerns threaten the Iraqi economy and to avoid them, as a result of the continuing exodus of Iraqi funds ». He stressed the need to «encourage Iraqi banks to grant the benefits of competition for depositors, and to keep the sector from any relevant practices of usury and money laundering, and the trend towards investments that touches the Iraqi reality in various sectors of development needs.»

He added that «the Iraqi Central Bank estimates that there are about 77 percent of the money supply is stored with the owners rather than being the Iraqi banks, which requires studied the causes and repercussions on the activity of the banking sector, which is the financial arm of the Iraqi economy, in addition to the importance of strengthening liquidity banking, which is one of the pillars of the basis for the liquidity needed by the bank. »

He stressed Mahouelle «the need to address what has become a challenge for many banks, namely preserving the rights of depositors and legal legitimacy to the Bank, and to develop the necessary equation for the Bank to meet withdrawal requests and lending without falling into the abyss of the scarcity of liquidity».

He explained that «this abyss touches the reputation of the financial and legal bank, requires the central Iraqi follow-up to such dangers and repercussions on deposits rights holders, as the central demands to expedite identification of any information up to it related not to meet the request to withdraw from any bank to find out the truth before they fester, and thus severe consequences on the course of the bank and the citizens' confidence in him. »

He suggested Mahouelle ideas that help address many of the mistakes that marred the special performance of banks finally, including the development of a specific mechanism for lending to the heads of the boards of private banks managed by their banks, as the central bank imposed strict restrictions in the control of deposits at banks, and not to allow any transgression of the ratios determined by when granting any bank loans, as well as to detect any excesses may get balances of citizens.

The Finance Committee in the House of Representatives Ezzat out of funds from the country to the Iraqi banking policies failed and demanded to investigate the causes of this phenomenon, as warned of serious repercussions on the national economy.

Said committee member Magda Tamimi in a press statement, said that «the loss of confidence in banks, after the bankruptcy of many of them and not to return depositors 'money, had a lot of money owners to resort to Iranian banks», to demand that «re-examine the work of Iraqi banks and banking policy to restore citizens' confidence and trust ».

She added Tamimi, that «the money out to neighboring countries is a big loss for the national economy, especially as the country is going through a financial hardship», attributed the output of Iraqi money to neighboring countries and forced the government to borrow from the World Bank, to «banking policy failure and lack of dependence on international standards, and the lack of the central bank to monitor the work of banks ».

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Time to drive them to the banks...enact the deposits law and Rv baby! This will get them to the banks!