Iraqi banks is not attractive for deposits of citizens / Adel Abdul-Zahra Shabib

Iraqi banks is not attractive for deposits of citizens / Adel Abdul-Zahra Shabib

Published on Tuesday, September 26 / September 2017 18:52

Banks, government and private, both suffer from the scarcity of funds has. Iraqi Central Bank revealed the existence of banks do not comply with its requirements. As for not depositing the citizens of their money in Iraqi banks preferring Aktnazha in their homes filled in to several reasons: -

1) Non-citizens trust banks suffered as a result of many of them to bankruptcy and scarcity of cash, prompting many citizens to withdraw their deposits, while others could not do so for lack of liquidity. Scarcity of liquidity in the banks may be due either to mismanagement or not to get borrowers from contractors and importers of financial dues from the government because of the lack of resources has, what made them slow to restore what Bzmthm of money to the banks.

2) the absence of security, political stability and fear of exposure of banks to the theft as has already happened to some Iraqi banks.

3) the spread of financial and administrative corruption and embezzlement of bank funds and money laundering.

4) few interest rate on savings accounts that do not encourage the filing.

5) failure to meet the demands of banks to some of its customers to withdraw some of their assets.

6) terrorist activity and the lack of security and stability is not conducive to attracting Iraqi funds to banks.

7) complications and red tape and bureaucracy does not encourage the deposit in banks.

[You must be registered and logged in to see this image.] For these reasons, the Iraqis preferred to travel to Iran and depositing their money in banks an interest rate of more than 15 per cent interest which is attractive compared Bmassarva which is yielding good financial return. Jordan also managed to attract Iraqi funds because of its stability and gives him the facilities and benefits.

9) robbed banks and raise fear among the bankruptcy of citizens and pushing them to deposit their money in their homes or in the neighboring countries of high interest rate.

Today is going through your difficult circumstances of the Iraqi banking sector as its contribution to the socio-economic development is very weak because of the scarcity of funds has since the monetary mass in circulation is estimated at 42 trillion dinars, there are in the banking system, 15 per cent and the rest is stored in the houses not to check people's banks.

Even the banks, in turn, in the development process must be: -

1. As stated in the Iraqi Communist Party, passed by the Tenth National Congress of the program, the need ((expansion and modernization of the banking public and private, both the system, on the basis of information and communication technology to contribute effectively to the advancement of the national economy and plays an influential role in the financing of productive investment activities, and the provision of better services banking and most recently, activating controls supervision of banks and monitored by the Central Bank so as to ensure a sound banking system. the anti-money laundering and the transfer of illicit funds and activate legal proceedings against offenders operations.

2. fight against financial and administrative corruption and economic support and specialized regulatory bodies and independence and to activate and develop the mechanisms and laws designed to protect public money and develop plans and procedures for the process to recover the looted money)).

3. The Communist Party calls in his program also to ((rejected calls aimed at full liberalization of the movement and transfer of capital and work to avoid the control of foreign capital to the banking sector, which lead to the use of a significant proportion of savings for speculative purposes and leak out of the country)).

4. The need to raise the interest rate on savings accounts to the extent of 15 per cent or more to attract funds compacta in citizens homes.

5. Provide a safe environment and the elimination of terrorism and put an end to the bombings, assassinations and kidnappings would help stability.

6. impose strict control by the central bank on banks to prevent misappropriation of funds and money laundering.

7. Payment ministries of financial dues to contractors and importers to be able to pay off Bzmthm banks to address the scarcity of funds.

8. simplify banking procedures and processing of red tape and bureaucracy in banks.

9. The need to protect deposits in the government and private banks, and in this regard the Council of Ministers has approved the establishment of a deposit guarantee in the government and private banks company in order to encourage citizens to deposit their money in banks rather than Aktnazha.

10. change banking policy and reliance on international standards and the imposition of strict control of the Central Bank of the banks.