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

0103 2016

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.

Dr. Shammari member of the World Union of Arab Bankers, adding that there are many voices in the Western world began to pursue Islamic banking model in the financing of economic activities, 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 money and invested capital in various projects, especially to attract funds 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.

The 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 said al-Shammari 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 stirred collaboration tools Islamic investment 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 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.

© Al Dustour 2016