Iraqi Parliament seeks legislation to protect deposits and bankers; Calls on finacial experts to take a leadership role for the private sector

Posted: January 10, 2014 in Iraqi Dinar/Politics

Editor: BK, RS 01/10/2014

Confirmed the parliamentary finance committee, said on Friday, seeking to pass legislation that protects bank deposits to reassure depositors and stimulate the private banks, and when he called on bankers to set up a company involved in this matter to open the door to their banks enter the domestic market more aggressively, welcomed the financial expert so, and stressed the need to make way the way for the private sector to exercise “leadership role” in the national economy.

Parliamentary: the Finance Committee is seeking legislation that protects bank deposits
Says a member of the parliamentary finance committee, Magda al-Tamimi, in an interview to the (long-Presse), that there is “a series of measures adopted by the Commission to improve the economic reality through the stability of the Iraqi currency against other currencies,” and suggests that “the central bank tries to maintain the stability of banks especially civil, through checks and instructions issued by every now and then. ”

It adds Tamimi, “The Finance Committee has not only the stability of the banks, but also seeks to develop the civil ones and ensure their participation in building the Iraqi economy by about a real increase their capital, by deposits, which often come from the ministries of the state and its various institutions, as well as deposits of citizens”, showing “The owners of these deposits were probably wary of resorting to banks in general and especially civil ones, so the Committee felt the need to enact a law that guarantees the deposits and protected.”

And describes the member parliamentary Finance Committee, that “the central bank would be obligated to protect bank deposits through the law that Sicherah Parliament later, allows the citizen or the investor or the government itself, that the money is deposited in private banks without fear or suspicion,”

And change course “does not deny that many people, including government agencies, they look even now some kind of suspicion of domestic banks, especially that there is a bitter experiences with them, as happened previously with the bank Basra and Warka after it announced Avlasshma, from here there must be a law secures bank deposits.”

Banker: it is necessary to set up a company to protect the deposits to improve the rate of private banks
The owners of the banks, in turn, welcomed the civil endeavor Parliament enact a law that protects bank deposits, and called for the establishment of a company specializing in this regard to opening the door to private banks to enter the Iraqi market strongly.

He says the managing director of United Bank for Investment, Muhannad Qasim, in an interview to the (long-Presse), it was “necessary to the existence of a modern and sophisticated to guarantee bank deposits if this is through the development of a private company contribution of big capital,” and shows that “the establishment of a company to guarantee deposits banking were the main demands of the majority of private banks to raise their betterment and reassure depositors. ”

The denominator, that “setting up a company bank guarantees to contribute, based on the claim of many private banks to secure bank loans, contributed to the expansion of lending activity for the various segments of the society to strengthen the national economy,” he continues to “set up a company to protect bank deposits step added in the right direction for the development of the reality sinks Eligibility and encourage the various parties to the deposit. ”

Financial expert: reviving the national economy requires upgrading the role of the private sector
It supported the proposal Financial experts set up a company to protect bank deposits, Adin, it gives momentum plus private banks and revive the Iraqi economy.

He says financial expert, on behalf of Jamil Antoine, in an interview to the (long-Presse), “The government is protecting the Iraqi economy around solo, without giving the private sector a chance to contribute in this regard,” and asserts that “the advancement of the national economy requires the activation of the private sector and enable it of his leadership. ”

Antoine believes, that “any legislation whether a new law to protect deposits or other, should be directed to the private sector, and that will be a factor at the same time to secure the support to ensure that no Haddht cons in this area.”

The study estimated that local banks’ capital amounted to the government until the end of October of 2012 last year, a total of 754 billion dinars, compared to more than four billion dinars for private banks, and investment balances in banks operating in Iraq recorded up to 31/10/2012, a sum nearly six billion dinars (5.947), the share of government banks, including 4.929 billion, compared to 1.018 billion for private banks.

The system consists of the Iraqi banking forty-three banks, as well as the Central Bank and distributed by the property between (7) and state banks (30) Bank waged, including seven Islamic addition to six foreign banks.
The International Monetary Fund said in a report issued in (the 21 of March 2013) after the end of consultations in the Jordanian capital Amman between a delegation from the Fund and the Iraqi delegation headed by Minister of Planning Ali Shukri) that the improvement occurred in the financial sector, but stressed that it is still in need of greater efforts by the central bank to revise monetary policy tools and strengthen banking supervision and to accelerate the restructuring of the banking system.

The IMF called the Iraqi Central Bank to take measures towards a gradual liberalization of foreign exchange offer through auctions held by the Bank in order to ensure non-recurrence of turmoil experienced by the financial market in the past year.

He stressed that the establishment of the fund on a national banking system requires the abandonment of the current model, which is controlled by the weak banks owned by the state, which enjoys preferential treatment distinguish them from private banks, calling on Iraq to do the strengthening of public financial institutions to ensure efficiency and transparency in the use of oil revenues.


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