Legislation guaranteeing the movement of liquidity from the homes to the banks

8/12/2016 0:00

BAGHDAD / Hussein Tgb
overcome the liquidity crisis experienced by our banking sector is now occupies a great deal of time and money , economists, look at mechanisms to address the reluctance of citizens to business owners or others for depositing money in banks and make it an important part in the development process.

Financial expert Mohammad Ali Jaber said in an interview for the "morning" that the financial distress experienced by Iraq due to the low and falling oil prices led to a shortage of liquidity , this is why the most prominent, as well as compactness in homes for the existence of a gap between the citizen and the banks, which requires it to provide legislative guarantees contribute to the pride of bank deposits.

Contractors dues and pointed out the existence of other challenges did the crisis of liquidity , especially in private banks, including the failure launch state allocations in the budget for the ministries and thus contributing to reimburse contractors who have dealings large sums of private banks, and this is also the reason for a significant impact by liquidity in the banking sector The private.

Currency bloc chunky and beyond in homes barrier of $ 20 billion , according to statistics of finance and economy experts.

Jaber pointed to the loss of large amounts of cash in the areas that were in the areas of bank branches were under the control of terrorism, which made the cluster of large cash transactions and cash - out impact negatively on the reality of liquidity in the country.

The reconstruction process and the possibility to get a relative improvement and gradual rate of liquidity while starting the process of the reconstruction of liberated areas, where prescribed contractors repayment to banks with the recovery of their activities, pointing out that a large segment of depositors to withdraw their deposits from banks , especially the displaced to meet the requirements of life contributed to the deepening of the negative effects .

There is another reason the lack of liquidity is not as important as its predecessors as seen Jabir that the assets in bank branches in Kurdistan, which the provincial government put the hand out and freeze because of the crisis between the province and the center "are also affected liquidity.

Jabir said the payment of dues of farmers delayed will have a positive role in supporting the reality of liquidity in the banking sector and do capital cycle, which in turn contributes to the process of sustainable development which contributes to the business in various production and service sectors to fulfill the requirements of life activated.

Boost liquidity and stressed the need for entry into force of the deposit Insurance Act, which is an important axis in restoring trust between banks, citizens and be deposits opportunity to boost liquidity, and the resettlement of salaries in private banks is the other will contribute to the achievement of several targets in the forefront of enhancing liquidity and lending facility development loan process including making there is a movement of capital turnover Links contribute to boost liquidity.

Jaber stressed the importance of restructuring government banking sector , which accounts for more than 90 percent of government deposits and the citizens, stressing the importance of benefiting from the implementation of the World Bank report in this regard, issued in 2011 , and certainly by the end of 2015 for the Iraqi financial sector , which recommended the return of bank restructuring Rafidain and Rasheed.

Guarantee deposits Jaber had urged in an interview earlier on accelerating the pace of work to establish a deposit insurance company being established under the umbrella of a law guaranteeing the right of depositors, and that the Council administration to the company consists of private banks to participate and operate in accordance with the mechanisms and guarantees provided to deposits that mean private banks, also stressed on the development of human resources to operate and brought into the banking sector in the development courses under the supervision of international experts, noting that workers in the financial sector must be Atsvo high professionalism to enable advanced banking products offered by international banks to their customers of the companies and the citizens.

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