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

February 23rd, 2016

Head of the Iraqi Islamic Association of Banks »Sabah's new»:
Baghdad's new morning:

President of the Association of Banks Islamic Iraqi Dr. Sadeq al-Shammari said, 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 growth and development of communities, leading to cash flows and commodity parallel and in sync at the same time.
Added 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, attracting a lot of 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 key targets for Islamic banking and in which they can handle any new liquidity crisis has exposed 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 within it.
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» .
Shammari pointed to the importance that are based on financial transactions to the 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 achieves localization of wealth and investment in energy, extraction, land reclamation and desalination fields, 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 of specialized investment and Islamic banking circles, pointing out that the last period moved cooperation with tools Islamic investment and through the establishment of mutual funds and which operates according to Islamic sharia law was investment activity is limited in these tools on financial markets in Muslim countries, it may be this is not a belief in the idea, but to stop the leakage of deposits them into Islamic banks believing their economic feasibility.
Shammari pointed out that Islamic banking business 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 inflation and rising deployed in communities unemployment rates, as well as 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 banking that is always going to fund social welfare productive projects (whether small, medium and do not forget micro) projects, which does not work is limited to the financing of large projects and forget the small and medium enterprises and micro.