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

Author: ASJ, HH
Editor: BK, HH
06/11/2016 12:45



Long-Presse / Baghdad

The Central Bank of Iraq, said on Saturday that guarantee bank deposits, the company is the "fund" is committed through which to compensate depositors at bankrupt banks or liquidated, with economic officials promise to move to "the right direction and an incentive" to restore confidence in banks, citizens guessed it had dissipated the impact of their experiences "negative," the former with private banks.

He said the Board of the Central Bank board member Ahmed Rehn said in an interview to the (long-Presse), "The establishment of the company to guarantee bank deposits as long as the form of the target of the Central Bank of Iraq since 2004, especially since such a company exists in other countries of the world," noting that "the company interest primarily to small depositors, who make up the vast segment of savers served as senior depositors. "

He added Rehn, that "the foundation of the company and to embrace the work requires time and mechanisms supported," adding that "the deposit guarantee the company will not be an investment but it will be a fund or making the central bank is committed through which to compensate depositors in general and small especially in the event of bankruptcy of the banks in which the money or liquidation there ".

Turn the appearance of Mohammed Saleh financial advisor to the Prime Minister said in an interview to the (long-Presse), "The establishment of the company to guarantee deposits step in the right direction to build a discreet banking system has the confidence of depositors through the protection of their rights and encourage citizens to deposit in banks."

Saleh pointed out that "the participation of government banks in the capital of a deposit insurance company can enhance its credit and enable them to pay more compensation to depositors, especially that most of the deposits of citizens in those banks."

In turn, the Finance Committee in the House of Representatives rapporteur Ahmed Hama Rasheed said in an interview to the (long-Presse), "The Commission will adopt measures that would improve the economic and financial reality in Iraq, including the banking sector development," noting that "the Iraqi Central Bank seeks to maintain the bank's stability eligibility particularly through checks issued between now and then. "

Rashid stressed, that "the Commission is pushing to increase banks' capital, which often come from different official bodies, as well as deposits of varying citizens," pointing out that "depositors in general were wary of turning to the private banks."

Promised a decision the parliamentary finance committee, that "the decision to establish a deposit insurance corporation would be a motivation and stimulus to the movement of the banks and restore citizen confidence and trust," adding that "the Central Bank would be binding under that protection of bank deposits by legal legislation secures the rights of depositors, investors and even the official bodies." .

He said Rashid, that "it will encourage the placement in private banks and eliminates worries them, especially in light of previous bitter experiences, as happened with the bank Basra and the Warka, who announced Avlasshma."

In turn, a government employee Hassan Shaker said in an interview to the (long-Presse), said that "the presence of a guarantor of deposits the company can improve the image of the private banks," noting that "re-citizen eligibility banks and trust need to be relatively long time definite guarantees from the state, represented the central bank, not to repeat previous negatives that what they are paying for depositors remains under the parking Central Bank spectators for their suffering for years. "

For its part, director of the school, Khawla Rashid said in an interview with the (long-Presse), said that "the presence of government guarantees to protect the deposits of citizens can restore confidence gradually to domestic banks, which began its work to provide many good services and facilities to the adoption of modern technologies", usually the "State-owned banks what still lagging behind technologically and suffer routine that made them averse citizens. "

The Central Bank announced, in (the seventh of June 2016), the Cabinet approval for the establishment of a deposit guarantee in the government and private banks with a capital of 100 billion dinars, while the company aims to stimulate citizens to deposit their money in banks rather than Aktnazha, confirmed money chunky citizens outside banks of more than $ 30 trillion dinars.

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

The banking system in Iraq consists of 54 banks as well as the Central Bank and distributed according to property between the seven state-owned and 23 private businesses, including Islamic nine in addition to the 15 branches of foreign banks.


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