Experts warn of the collapse and bankruptcy of the private banks

- April 1, 2015


Mahouelle: corruption and weak oversight pushing to manipulate the money citizens

Experts warn of the collapse and bankruptcy of the private banks

BAGHDAD - Abbas al-Baghdadi

Economists detect exposure community banks into bankruptcy as a result of the financial crisis, with the country as a result of lower oil prices and a decline in exports as well as increasing citizens' requests to withdraw their deposits, warning of the consequences of the collapse of the private banks .fima parliamentary Finance Committee plans to host concerned to contain the crisis and address.

The economist said Essam Mahouelle (time) yesterday that the (financial crisis has led to the scarcity of liquidity in the markets, making the owners of deposits of citizens are turning to withdraw their money from private banks and this is in a state of extreme confusion and cause the collapse of some banks that do not have the financial reserves) .

Pointing out that (some banks were circumventing the citizens by offering deals and temptations in order to encourage them to deposit their money in what they do not Tmmeltk financially confounded, or up position to engage in banking business within the scientific and legal controls, which contributed significantly to the speed of collapse when the first crisis was exposed ).

He Mahouelle that (double the central bank control over the private banks and the presence of corruption in some of the oversight committees covered the administrations failure and controls these banks) following up on that (the private banking sector is used financial reserve has in case subject continued without radical solutions from the central bank and the government, the more private banks will announce bankruptcy is, they break down).

He pointed out that Mahouelle (Pat public does not trust banks Associations and this other problem burdening the private sector because of that some of the departments that the banks are corrupt and circumvent instruments and deposits some citizens).

He attributed the economist David Abdul Zayer bankrupt banks not to launch this year, projects in the budget.

He told the (time) yesterday that (not to launch investment and commercial projects in the current year's budget led to weakness in the liquidity of private banks, because a large part of which is funded by the projects), warning (the seriousness of the bankruptcy of banks, if it does not interfere with the central bank to support it).

He stressed that Zayer (private banks represent the country's economic collapse reputation in the event that will be reflected in the image on the country's economy in general).

The economist said Majid picture of (time) yesterday that (a lot of private banks have branches in areas controlled by the organization Daash therefore liquidity fell as well as many of the loans given by private banks to investors, government contractors did not pay off those loans because of the financial crisis the country).

He said (lower oil prices reduced the possibilities of increasing the financial reserves of the Central Bank and a lot of money in the banks the government has been used by the government to bridge the budget deficit, and these things are all affected the banking and financial climate in the country).

He ruled out the possibility of the picture (the collapse of some banks because the central bank began to deal with private banks well), warning that (for use by some banks to pay part of the money customers will lead to a loss of trust between them and their customers).

He pointed out that the picture (the country going through a major crisis is not limited to cash, but also include other sectors, but in general it is a temporary phase will fade over time).

He said a number of citizens of (time) yesterday that he (after lack of liquidity, which has recently swept the market we now fear for our money deposited in private banks).

They said (some banks did not happen for us complete instruments on the pretext that liquidity has a few).

He said that the citizens (some banks told us they are bankrupt and it is trying to find new ways to restore and Daúana to have).

Stressing that they (in the case of those banks failed to fulfill all the promises we will have to raise a lawsuit against it) .utalapt parliamentary finance committee the government for urgent action to contain the collapse of the private banks.

Said committee member Ahmed Sarhan Sarhan (time) yesterday that (Parliament completed the legislative duty by approving the budget and put tackling the financial crisis faced by the country, such as foreign loans, taxes, etc.).

He said (there is a real crisis facing the private banks is the lack of liquidity and this makes the private banking sector to limit movement and Judy threatens its survival).

He Sarhan that (task now is executive government task, it has to find solutions to this problem, in collaboration with the Central Bank through the creation of mechanisms fast processing enables private banks of advancement again and prevent collapse and re-citizen with confidence) indicating that the (committee will try to host the concerned officials to discuss ways solution and urged them to speed up so).

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