Guarantee of deposits "step to restore confidence in banks" and "cons" exceeded the previous stage

2016/06/11 12:45


The Iraqi Central Bank, said Saturday that the company ensure that bank deposits are "box" to compensate depositors at bankrupt or liquidation of banks, as officials counted economists "step in the right direction and an incentive" to restore confidence in banks, outweighing citizens they may dent the impact of "negative" experiences with private banks.

He said the Central Bank Board Member Ahmed barihy told the (range), to "establish a company to insure bank deposits as long as the shape of the target of the Central Bank of Iraq since 2004, especially if such company exists in other countries of the world", noting that "the company is interested in primarily to small depositors, who make up the wide range of savers like good senior depositors."

Barihy added, "the establishment of the company and initiated action requires a supported mechanisms", noting that "the deposit insurance company investment will be but a box or make a Central Bank committed to compensate depositors in General and especially their bankrupt banks where their money or filtered.

Financial Adviser, said Prime Minister Mohammed Saleh's appearance (range), to "establish deposit insurance company a step in the right direction to build a rational confidence bank depositors by protecting their rights and encouraging citizens to deposit in banks.

Saleh said that "the participation of banks in the capital of the deposit insurance corporation could reinforce its balance and enable greater compensation to depositors, especially that most of the deposits of citizens in those banks.

Said the decision of the Finance Committee in the House of Ahmed Rashid's parenchyma (range), that "the Commission will adopt measures to improve economic and financial realities in Iraq, including the development of the banking sector", stating that "the Central Bank seeks to maintain the stability of the banks, particularly civil war through checks issued by every now and then."

Rashid, the drive to increase the capital of banks that often comes from different official agencies as well as unequal citizens ' deposits, "pointing out that" the General depositors who fear resorting to private banks.

The parliamentary Finance Committee decision, promised that "the decision establishing the deposit insurance corporation would be an impetus and stimulus to banks and restore the confidence of the citizen movement", adding that the Central Bank would be obliged under the protection of bank deposits through legislation secures the rights depositors and investors and even official bodies. "

He continued, "that would encourage banks to deposit and removes concerns, especially in light of previous bitter experiences, as happened with the Basra Bank walorkaa, which we announced both failed.

Government employee, said in an interview with Hassan shaker (range), that "having a guarantor of deposits can improve the image of private banks", stating that "restore the confidence of citizens by private banks need relatively long and firm guarantees from the State, represented by the Central Bank, not to repeat the previous negatives still paying depositors under Central Bank parking a spectator on suffering for years.

Director of the school, said in an interview with Rachid Khoula (long press), that "State guarantees for deposits protection could restore confidence gradually to private banks, which began offering good services and many facilities by adopting modern technologies", "the Government banks usually still technically retarded and suffer routine that make citizens averse."

The Central Bank announced, in (7th of June 2016), Cabinet approval for setting up a company to insure deposits in State banks for a capital of 100 billion dinars, while the company aims to stimulate citizens to deposit their money in banks rather than her firmness, assured money stashed away for citizens outside the banks of more than 30 trillion dinars.

The Association of Iraqi banks, announced (October 2015) the ratio of deposits banks ranging from 65 to 68 trillion dinars, of which no more than 22 trillion private bank deposits.

Iraq's banking system consists of (54) a Bank as well as the Central Bank and distributed by seven governmental ownership and 23 private commercial, including nine in addition to Muslim (15) branches of foreign banks.