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Experts: the banking system declining to lower internal trade

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Experts: the banking system declining to lower internal trade

07/1/2017 at 12:00 am

Movement and the deposit guarantee law supports its activity

Baghdad/thghb/Chai's PM

Build sophisticated banking sector based on trust with the beneficiary whether companies or citizens represents a solid economy t the size of wealth owned by Iraq, as internal business movement has positive impact to stimulate banks to need liquidity transfers between different cities.

Central counsel the Bank reported that Waleed Idi Amin «Central seeks to make progress in the reform of the financial and banking sector in particular and to maintain sufficient reserves to cover the currency of exporting more than 40 trillion dinarodaman cover the value of imports for six months.

Economists called on more than one occasion the deposit insurance law which encourages transfer of money stashed away from homes that exceed 20 billion dollars into the banking system and hired her to serve the economy.

Added in the interview for «morning» reality perspective stresses that a solution on the horizon through the revision of economic and financial policy, and a greater role for the private sector, as well as address effects of low oil prices by increasing oil and gas exports and the reduction of government expenditures, and provide appropriate legislative environment to ensure the transition from the central system to the market economy that will put the country on the threshold of a new phase in the economic progress and prosperity over the medium term.

And Idi Amin that the banking sector was also affected by the low volume of trade between Baghdad and the provinces up to 80 percent in 2016 compared to 2015, as reflected negatively on economic activity, thus anaksh on low incomes and royalties and taxes, not to mention the low contribution of the agricultural and industrial sectors in GDP (4 percent) (2.5%) of the agricultural sector and (1.5%) of the industrial sector by Idi Amin.

The relative said unemployment rose from 11% in 2014 to 19 percent by 2015 as a result gang war «ISIS» terrorism almost a quarter of the population, leading to rising poverty index ratio of about 30 percent of the population of approximately ten million citizens.

IDI between that of things which bear a negative impact on the economy and the movement of liquid down the amounts allocated in the investment budget for the purpose of creating new projects with low implementation in the majority of projects, as well as the allocation of new resources or sufficient to establish investment projects in the year 2017 and to complete ongoing projects, as well as increased cash leakage phenomenon outside the banking system, which limits (37) trillion dinars of total currency in circulation (43) trillion dinars until July 2016 (3) trillion dinars In a banking system (87%).

The decline in the number of dealers with banks and who appreciate the limits (6) million, or (12%) of the total population due to low banking awareness, increased poverty and lack of commitment of some banks to meet obligations to depositors, weaker confidence in the banking system and social and economic groups to withdraw their deposits and its firmness in housing.

For his part, between a member of the International Union of Arab bankers Islamic financial institution banks play the role of financial intermediation between savers and investors, Dr Sadiq al-shammari financial institutions contribute to advancing economic and social development in the environment in which they operate, pointing out that the aim of these institutions achieve economic development and raise living standards improved and social solidarity to ensure sustainable development.

Shimmari pointed out that despite the continuing expansion of Islamic banks horizontally in most countries of the world but faces a sentence of challenges often hinder progress and laws governing Islamic banking activities especially governing its relationship with central banks such as the rate of reserves and liquidity and funding constraints which put on Western-style laws don't suit the nature of the investment.

Shammari between the banking business requires special administrative competencies qualified trainer be familiar with banking nature as different from traditional banks, pointing to that address it through specialized courses and workshops in collaboration with international bodies such as the General Council of Islamic banks and Training Institute Islamic Development Bank.

Banking expert Mehmet Ali Jaber had demanded action on banking culture that have an impact on the dollar exchange rate dinar, stressing the importance of adopting the means works to broaden the base of banking culture that urges public beneficiaries to deal with banks and not follow the culture of hoarding money in houses owned by citizens.

He said in the interview for «morning» that the citizen who attempts to deposit his money in private banks must be confident that they are investing in the right direction and that there is protection for his money that can move the calculated continuously without problems, pointing to the need to legislate appropriate laws for this trend.

Jaber urged the importance of accelerating the pace work deposit guarantee corporation being established under the umbrella of the law guarantees the right of applicants, and that the company's Management Board is composed of private banks and operate in accordance with the mechanisms and safeguards apply to deposits that private banks.

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