You are not connected. Please login or register

Private banks are facing a "crisis of confidence" because of its inability to pay back customer deposits

Go down  Message [Page 1 of 1]




2017/01/03 (00:01 pm) - hits: 78 - count (3816)

Private banks are facing a "crisis of confidence" because of its inability to pay back customer deposits

Baghdad/peace Zidane

Dozens of people pretending to be continuously in Baghdad to prompt the Central Bank to intervene to restore their deposits of some private banks facing severe liquidity crisis.

Bankers attributed the current crisis experts and experienced by some civil banks financial crisis faced by the country due to low oil prices and security collapse that followed the fall of Mosul in 2014.
Private banks rose after 2003 for up to 50 banks, having been 17 banks before this date.

Despite growing private banking sector in Iraq after 2003, but this did not promote citizen confidence in this sector. According to statistics, only 12% of Iraqi bank accounts, when 70% of the money supply remained far from banking session.

Mohammed Rubaie, a protester who placed their money in a Bank for investment (range) "for more than a year we pretend to Central Bank intervention and State institutions to recover our money that refuse to manage the Dar es Salaam investment bank returned to us", noting that

"the bank refuses to return the money under the pretext of not having money in the vaults, while the Central Bank can give us our money back after launching legal reserve which belongs to the Bank."

Spring added that "bankrupt banks hurt us a lot because it stopped many commercial projects for my inability to get my money back or transferred abroad via private banks for not trusting them."

The financial expert said the Sudanese authorities to "range" to "non-citizen trust in private banks is not new but existed in the time of the former regime and strengthened during the current period after some banks go bankrupt," he said, adding that

"private banks operating in the country now the profit goal through obtaining funds from currency auction and not supporting the national economy."

And that "the Central Bank's reluctance to sell the currency would lead to the collapse of many banks because some of them even do not have branches and its participation in the auction currency. And spoke of the "Iraq started to leave money to neighboring countries because of financial benefits granted banks on savings over Iraqi banks to secure their money."

Financial expert believes that "because of the poor performance of Iraqi banks due to lack of control by the Central Bank, adding that" most private banks are not corporations but family firms and some of the political parties today rejects the window doing her homework through the granting of loans to citizens.

In turn, the banking expert shows Waleed Idi challenges facing banks. IDI says to "range" to "the problems of the banking system is looting and destroying some bank branches in the provinces occupied by ISIS and non-payment of dues to State contractors who borrowed from the banking system and delayed payment in addition to the many holidays in the country."

Banking expert noted that "some banks complaining of transient liquidity crisis, and the Central Bank works to provide liquidity by launching legal reserve maintained the shape" defences, but that "

the security situation and political disorder and increased internal and external migration and there were some violations in banks and lack of proper standards reflected negatively on the banking sector and made dealers among Iraqis not exceeding 12%.

She was 5 she banks: Dar es Salaam, and the North, economics, walorkaa, Basra, faced a liquidity crisis over the past years, which prompted the Central Bank to extend its liquidation or merged with other banks.

In the same context, says Deputy Raheem Darraji, Member of the parliamentary Finance Committee, that the "subject private banks a thorny issue, and that 80% of these banks are shops (places of business) led by some political actors", noting that "these shops main function just to participate in the auction currency through the window of the Central Bank.

The Central Bank refused to acknowledge the existence of Iraqi banks losing money, preferring to talk about difficulties. And says portentous shaikhali, Deputy Governor of the Central Bank, "" the term "Central Bank keen to address all situations of faltering banks and upgrade them to reach acceptable levels".

Sheikhli said that "very few distressed banks don't exceed the fingers of one hand." "There is no loser in Iraq Bank and some banks that got to stumble back to the circumstances of the economy in addition to the new experience of private banks that suffered from some failures."

Central Bank official finds that "overall performance of private banks. If the improved economic situation, the role of banks will be strengthened very significantly."

"Sheikhli draws situations that got fit, we have taken several measures to contain few problems so it will enhance the reputation of banking in Iraq", stating that "there is a real desire of banks to improve their performance.

In turn, private banks Association recognizes that bug that plagues the economy after 2014 impact heavily on banks.

Tarik says, Executive Director of the Association, for "range" to "faltering banks phenomenon occurred after ISIS control over some areas in the country and low liquidity after pulling citizens for their deposits in addition to lower the price of oil."

Gibraltar revealed "by the Central Bank to give instructions to troubled banks to solve its financial crisis and the role of the Association is to follow instructions", noting that "the Central Bank trimmed the number of distressed banks experiencing cash shortages to three banks now."

Back to top  Message [Page 1 of 1]

Permissions in this forum:
You cannot reply to topics in this forum