*********Expert: the banking system dropped to the low internal trade

7/1/2017 0:00

Labor movement and the adoption of the Deposit Insurance Act supports activity
BAGHDAD / Hussein Tgb / Shokran Fatlawi

Build a developed banking sector is based on trust with the beneficiary, whether companies or citizens is the most important pillars of building a strong economy, the size of the wealth owned by Iraq, and the internal trade movement have a positive impact to activate the banks of the need for the transfer of cash between the various cities.

Central Mstcharalpennek Walid Idi said that «the Central seeks to achieve progress in the reform of private financial and banking sector and maintain adequate reserves to cover the exporting currency, amounting to more than 40 trillion Denarodman cover the value of imports for a period of 6 months».

He called economic experts in more than one occasion pass guarantee deposits, which encourages the transfer of the money supply storehouse of homes in excess of $ 20 billion to the banking system and using them to serve the economy law.

He added in an interview with «morning» that actually perspective confirms that a solution is in sight through reconsider economic and financial policy, and give a greater role to the private sector, as well as addressing the effects of lower oil prices by increasing oil and gas exports and reducing government expenditures, and provide legislative environment appropriate to ensure the transition from a centralized system to a market economy, which will put the country on a new stage in the economic prosperity and progress in the medium term threshold.

And between Idi that the banking sector is also affected by the low volume of trade exchange between Baghdad and the provinces up to 80 percent in 2016 compared to 2015, as reflected negatively on economic activity, and thus Aneksh on low incomes, royalties and taxes, not to mention the low contribution of the agricultural and industrial sectors in the gross domestic product total to (4 percent) of them (2.5 percent) and agricultural sector (1.5 percent) for the industrial sector, according to Idi.

He explained that the relative unemployment rose from 11 percent in 2014 to 19 percent in 2015 as a result of the war with gangs «Daesh» terrorist or nearly a quarter of the population, which led to rising poverty index ratio to about 30 percent of the population, or approximately ten million citizens.

Idi between that of things that carry a negative impact on the economy and the movement of liquidity reduction allocated in the investment budget amounts for the purpose of establishing new projects with low implementation in the majority of the projects, as well as failure to allocate new resources or insufficient to establish investment projects in 2017 and limited to the completion of projects in the pipeline as well as the growing phenomenon of cash leakage outside the framework of the banking system, estimated at up to 37 trillion dinars of the total currency in circulation amounting to 43 trillion dinars, up to July 2016 compared with 3 trillion dinars in the banking system, ie (87 percent).

Also, the low number of dealers with the banks, who can afford up to 6 million people, or by (12 percent) of the total population because of the low awareness of the bank, and the growing phenomenon of poverty and lack of commitment by some banks to fulfill their obligations to depositors, weaker confidence in the banking system and led social groups and economic to withdraw their deposits and Aktnazha in housing.

For his part, member of the World Union of Arab Bankers Islamic banks and financial institution that acts as a financial intermediary between the two categories of savers and investors d. Sadiq al-Shammari said the financial institutions contribute to promoting economic and social development in the environment in which it operates, pointing out that the objective of these institutions to achieve economic development and improve the living standards and social solidarity in order to ensure sustainable development.

The Al-Shammari said that Islamic banks despite the continuous expansion horizontally in most countries of the world, but it faces a series of challenges often hinder progress in the laws of Islamic banks and private governing its relationship with the central banks, such as reserves and liquidity and funding constraints which put on the pattern of Western laws rate governing the activities that does not fit the nature of Islamic investment.

Shammari said the banking business requires special qualified and qualified administrative trained to be familiar with the nature of banking, that they are different from traditional banks, pointing out that the process it is done through the organization of specialized courses and workshops in collaboration with international bodies such as the General Council of Islamic Banks and Training Institute of the Islamic bank development.

The banking expert Mohammad Ali Jaber student working on the deployment of banking culture that have an impact on the dollar's exchange rate against the dinar, stressing the importance of adopting means working to expand the deployment of banking culture base, which urges the public beneficiaries to deal with the banks and not to follow the culture of hoarding money in homes owned by citizen.

He said in an interview for «morning» that citizens who begin to deposit their money in private banks, he has to be confident that it is investing in the right direction and that there is protection for his money, which can move calculated continuously without problems, pointing to the need to expedite the enactment of appropriate laws to this trend.

Jaber urged the importance of accelerating the pace of work and the establishment of a deposit insurance company being established under the umbrella of a law guaranteeing the right of depositors, and the administration to the company's board consists of private banks to participate and operate in accordance with the mechanisms and guarantees provided to deposits that mean private banks.

http://www.alsabaah.iq/ArticleShow.aspx?ID=129342