A relative view of banking indicators

Wednesday 05 February 2020

A relative view of banking indicators
Dr.. In the name of Brahimi
 
The concept of banking intensity refers to the population of each bank in a country and is one of the banking indicators adopted in economic and financial analysis, and then whenever this indicator falls, this indicates the spread of banking habits, in the European Union this indicator scored (1500) people per bank and accordingly it is better Of it in the United States, where five thousand people registered for each bank, except that the forms that some research suffers from are taking the index absolutely without looking at the specificity of the economy in terms of degree of financial depth or technological progress
 the user.


Therefore, we find a lot of people interested in banking issues and even some officials believe that this indicator in Iraq, which amounts to ten thousand people, will decline for each bank, and they will make recommendations on improving it by increasing the number of banks and banking branches in order to achieve this, and they will analyze the indicator absolutely without looking at the reality of the Iraqi economy And its privacy.


The number of banks in Iraq currently stands at (76) banks, knowing that the number of their branches combined is close to (1310) branches, and this matter will certainly improve the percentage of banking density in Iraq, but the most important question is to what extent will be achieved


that? To know the answer, it is necessary to return to the previous question, and within the framework of the answer a number of indicators should be reviewed, including the percentage of cash leakage that reaches in Iraq to about (70%), which represents the percentage of what is in the currency outside the banking system out of the total issued currency, and this It indicates weakness in dealing with the banking system despite its improvement as a result of the numerous measures taken by the Central Bank, especially the salary settlement project, in addition to that (80 percent) of the deposits are almost with the banks.




 Government.
On the other hand, the percentage of bank liquidity is around (90 percent) and it exceeds the standard ratio that was set within the requirements of Basel, and this means that banks were unable to use the available liquidity due to them on the one hand, due to the high hedging on the one hand, and the tightness and instability of the market on the other hand. We see the need to overlook the progress achieved in the work of the banking sector. The index of banking intensity with relative measurements is high for us, not the opposite, as many believe.


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