Abdul-Mahdi: The proposed company from the central bank is a positive step to encourage the banking sector

2016/6/8 20:22


The leader of the ISCI Adel Abdul-Mahdi said "the company proposed by the Central Bank with a capital of 100 billion dinars that, and approved by the Council of Ministers, is a positive step to encourage the banking sector and to ensure that depositors' money when the bank's inability or exposure to the bankruptcy and liquidation.

Mahdi said in a press release received by all of Iraq [where] a copy of it on Wednesday that "our economy depends Monetary mainly Cash Economy, and this is a serious manifestation of backwardness, corruption and money laundering, there are about 34 trillion dinars outside the banking session, are traded in the parallel economy, it is difficult control or pay trends sound development, "noting that" this is a big number is a half of the "money supply" on the basis of M1 (67 trillion dinars, ie paper currency and coins mainly) and about 24% of the "money supply" based on M2 (83 trillion dinars , ie M1 plus short-term deposits in banks, mainly) by June this figure, note that expressions of M1 and M2 and M3, etc., are different orders of means and tools currency is displayed.

He continued by saying, "deepen this reality after the nationalization and the dominance of easy money and the economy rentier and the disintegration of the economy and Mavuath, dip habit banking and the collapse of confidence in the banking system, and the lack of clarity and integrity and fairness of the tax system, and the arbitrariness of the state and put her hand on the bank accounts for security reasons, economic or personal."

He said the "lack of transparency, fairness and sound policies to fight corruption and money laundering in the country's economy, led and leads to corruption and money laundering in the parallel economy outside the note that" parallel "or" shadow, "or" black ", depending on the Titles, is in the advanced economies as well the economy is in United States of about 2 trillion dollars, and cause the loss of taxes, of $ 500 billion dollars a year or so, but its weight is very weak compared to the sheer size of the deal and banking tools other payment but stresses economists there on the presence of the benefits of a national economy, although harmful to the treasury, as a factor to absorb unemployment and move some activities which are difficult to manage or control them otherwise. "

He said Abdul-Mahdi said "the company was founded, it must be completed in our opinion, other actions, not in the framework of the protection of depositors' money, but also because Astjmab largest volume of money as well, and that would get the economy moving and to stimulate interest, business and investment," he said, adding that "the central bank had studied the company's capital, and it seems to us that the proposed capital are relatively few compared to the sector, the size of the deposits, especially as we have seen deficits and qualifying through the years. of course company may re-insurance to ensure their ability to repay, and will be depositors more assured if was associated with security companies and international specialized institutions, and to ensure the smooth measures in cases of bankruptcy, liquidation and defaults. "

He stressed that "with the financial health, and to get the economy moving, and Astjmab liquidity, has to be a clear tax policy that assured the depositors, the lack of exposure to the arbitrariness of administrative and authoritarian, compelled them to stay out of the banks. It can put temporary incentives and permanent to enter the banking session, offering temptations Kalaafa or reduction of settling accounts tax, and protect deposits from disclosure and auditing practices outside world, and the development of legal guarantees for it. "

"The study of interest rate policy. There is no doubt that the central bank in cooperation with the Government, and in accordance with the law, he can plan to take on the percentage of encouraging interest for the money prices of mode, and plan an interview to encourage lending at attractive prices benefit, including moves the markets, interests and investments."

He stressed that "a vote of confidence in the public and private banks and the elimination of discrimination in deposits and transactions and stop instruction chaos and Fjaiatha, and the arbitrariness of administrative and judicial proceedings and address the red tape and bureaucracy stalled for business and degrading treatment of customers and banks alike," and wondered "if the state itself is confident these banks, how will trust them citizens? Banks At economies Day-lever development and oxygen economy and the closet his money.