Islamic banking to contribute to the economic imbalance between supply and demand

Islamic banking to contribute to the economic imbalance between supply and demand

7/3/2016

Rai-The head of the Iraqi Islamic Banking Association , Dr. Sadeq al - Shammari, highlights the role of Islamic banks in achieving economic balance sound by linking funding to work and projects , which leads to achieve more balance between supply and demand, indicating that contribute to economic stability and development of societies, what lead to cash flows and commodity parallel and synchronized at once.

He said Dr. Shammari member of the world Union of Arab bankers also said that there are many voices in the Western world began to pursue Islamic banking model in the financing of economic activity and has become a cornerstone and an important global banking operations , which has become a magnet and attract many investors and traders in these products and , preferably adopted in Iraq to attract capital and invested in various projects, especially to attract money and savings is one of the most basic Islamic banking targets and which they can handle any crisis , new liquidity might be exposed to the Iraqi economy.

He said Shammari need to work to create a favorable environment to attract money through Islamic banking to Iraq , which needs to be the size of a large business in many joints production and service, especially as the country is one of the rich countries , the size of the natural wealth and this is one of incentives to work inside.

He said Shammari said «economic balance contributes to reducing the risk of inflation in the prices of goods and services , which is the target nominal financial , public sector and economic policies, in addition to the achievement of the individual and society benefit and happiness and well being of communities and prevent cases of fraud and ambiguity in transactions and there be transparency in determining the profit margins of these institutions ».

He Shammari to the importance of that is based on transactions Finance to goods and services real flows, any processes that increase added values, which in turn achieve real balance through optimal independence of resources and facilities and the elimination of rampant unemployment and achieve efficiency, effectiveness and economy in the administration of financial institutions, noting that the economic balance to achieve localization of wealth and investment in the fields of energy the extraction and land reclamation and water desalination, rather than trading and gambling in derivatives.

He fennlliae has become able conventional banks and investment banks provide such services was limited to working in the Arab and Islamic banks, but had transgressed to international banks as the these banks to open windows specialized circles for investment and Islamic banking, pointing out that the last period moved cooperation equity instruments Islamic and through the establishment of mutual funds which operate in accordance with the provisions of Islamic Sharia did investment activity is limited in these tools on financial markets in Islamic countries may be this is not a belief in the idea, but to stop the leak deposit them into banks and the Islamic faith in their economic feasibility.

He Shammari said the work of Islamic banks not limited to financing activities , service, or offering retail products, but the departments that eyeing the creation of jobs, by contributing to finding solutions to economic problems inherent , such as high rates of inflation and rising deployed in communities unemployment rates, as well as the high ratio of public debt to GDP, as well as the poor distribution of wealth or poor distribution of income and the lack of effective education and training mechanisms and the lack of effective market mechanisms in the delivery of the degree of products with high efficiency and urged the departments of Islamic banks can always turn to finance social welfare productive projects (whether small or medium do not forget the micro - projects), which does not work is limited to the financing of large projects and forget the small and medium enterprises and micro.