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Friday, February 21, 2020
Ways to encourage citizens to deposit their money in banks
Experts and specialists in iraqi financial and banking affairs say citizens should be encouraged to deposit their money in Iraqi banks to contribute to the country's economic development, stressing the importance of taking administrative measures to guarantee the rights of depositors and tightening control over the work of local banks.
"The banking system in Iraq operates under a turbulent environment and therefore has not been able to carry out its normal functions, indicating that the financial issue is usually related to the security, social and economic conditions, all of which are turbulent in Iraq, as well as the lack of government economic approaches," banking expert Abdul Aziz Hassoun said in a statement to Al-Sabah.
He added that the departure to spend financial returns on imports only is a big reason for the delay and deterioration of banking, pointing out that most banks currently carry out tasks and actions that do not affect the banking business.
He explained, that banks usually do not operate in banking and do not deal in foreign currencies selling and buying currencies, explaining that the nature of the work of banks attracts deposits and invests them in a safe way and achieves returns and growth and this is not available in the Iraqi banking environment, because all banks are busy dealing in foreign currency i.e. selling and buying hard currency.
He stressed the need for the Central Bank to take measures to guarantee citizens their rights and to tighten control over the work of banks, so that the bank should not be a spectator in the face of the collapse of some banks that do not give citizens their rights.
He pointed out that the development of the banking system needs administrative measures and tightening the supervision of the central bank because it is the primary responsibility for the work of banks and is the one who granted them investment permits, and does not need legal legislation because the laws exist.
"There should be programs that encourage citizens to deposit their money in banks to contribute to the country's economic development."
Financial expert Mohsen Abdul Jalil said the backwardness of the Iraqi banking system is a major reason for foreign companies' reluctance to invest in Iraq.
Abdul Jalil said in a statement to "Al-Sabah": There must be development programs for the Iraqi exchange system to keep pace with developments in international banks to be an attractive factor for foreign companies to Iraq.
He said encouraging citizens to deposit their money in banks instead of piling them up in homes and investing them in development projects that generate significant profits for the bank, the citizen and the country in general, calling for restoring citizens' confidence in Iraqi banks by launching incentive programs to motivate them to deposit their money.
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