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A crisis of confidence or psychological factors.. What are the reasons for Iraqis not depositing their money in banks?
Special files |Yesterday, 18:16 |
Baghdad Today - Baghdad
We often hear about the loss of a sum of money due to a fire accident inside a house or an armed robbery, as a result of citizens keeping money at home away from bank deposits, and
despite the progress made in the financial and banking sector and the emergence of electronic payment cards,
the citizen still prefers to deal with " Cash" in the details of his daily life, which raises many questions, the reasons for which economists explain to "Baghdad Today."
Today, Wednesday (October 18, 2023), economic expert Mahdi Douai explained the factors behind why Iraqis do not deposit their money in banks.
4 main factors
In an interview with "Baghdad Today", Douai says,
"Raising the interest rate is a measure adopted by monetary policy in most countries of the world in order to withdraw the monetary mass for objective reasons that reflect positively on the economic aspect, whether through
financing internal loans or creating specific balances."
He pointed out, "4 factors hinder Iraqis from depositing their money in banks: the
weak banking culture among large segments, as well as the
religious motives that influence the decision of many, not to mention the presence of a
psychological factor that prompts some to keep money at home, and there is a final and important factor, which is the
weak confidence of many." With banks.”
Banking system
The economic expert stated that “the
banking system in Iraq has begun to take important measures that are economically feasible in the file of dealing with liquidity, including internal loans and providing liquidity to the government,” adding,
“But the matter is not very reliable due to the weak turnout, which requires efforts in order to push people to deposit.” Their money is in the banks.”
Last January, Iraqi Prime Minister Muhammad Shiaa Al-Sudani
announced a number of financial and economic reforms in the country,
including the activation of the electronic payment system, as
a statement issued by his office announced work to
activate the “electronic payment” (Point of Sales) system,
effective From the first of next June.”
The government has confirmed the start of implementing the system, exempting its electronic equipment from taxes, in an attempt to encourage private companies to adopt this system, as Iraq is one of the lagging countries in implementing it.
Economic affairs specialists confirm that implementing the electronic payment system means the
necessity of opening bank accounts for all
shopping centers,
hospitals,
factories,
medical clinics,
pharmacies, and
others.
https://baghdadtoday.news/233496-ازمة-ثقة-أم-عوامل-نفسية.-ما-أسباب-عدم-إيداع-العراقيين-أموالهم-في-المصارف؟.html
Special files |Yesterday, 18:16 |
Baghdad Today - Baghdad
We often hear about the loss of a sum of money due to a fire accident inside a house or an armed robbery, as a result of citizens keeping money at home away from bank deposits, and
despite the progress made in the financial and banking sector and the emergence of electronic payment cards,
the citizen still prefers to deal with " Cash" in the details of his daily life, which raises many questions, the reasons for which economists explain to "Baghdad Today."
Today, Wednesday (October 18, 2023), economic expert Mahdi Douai explained the factors behind why Iraqis do not deposit their money in banks.
4 main factors
In an interview with "Baghdad Today", Douai says,
"Raising the interest rate is a measure adopted by monetary policy in most countries of the world in order to withdraw the monetary mass for objective reasons that reflect positively on the economic aspect, whether through
financing internal loans or creating specific balances."
He pointed out, "4 factors hinder Iraqis from depositing their money in banks: the
weak banking culture among large segments, as well as the
religious motives that influence the decision of many, not to mention the presence of a
psychological factor that prompts some to keep money at home, and there is a final and important factor, which is the
weak confidence of many." With banks.”
Banking system
The economic expert stated that “the
banking system in Iraq has begun to take important measures that are economically feasible in the file of dealing with liquidity, including internal loans and providing liquidity to the government,” adding,
“But the matter is not very reliable due to the weak turnout, which requires efforts in order to push people to deposit.” Their money is in the banks.”
Last January, Iraqi Prime Minister Muhammad Shiaa Al-Sudani
announced a number of financial and economic reforms in the country,
including the activation of the electronic payment system, as
a statement issued by his office announced work to
activate the “electronic payment” (Point of Sales) system,
effective From the first of next June.”
The government has confirmed the start of implementing the system, exempting its electronic equipment from taxes, in an attempt to encourage private companies to adopt this system, as Iraq is one of the lagging countries in implementing it.
Economic affairs specialists confirm that implementing the electronic payment system means the
necessity of opening bank accounts for all
shopping centers,
hospitals,
factories,
medical clinics,
pharmacies, and
others.
https://baghdadtoday.news/233496-ازمة-ثقة-أم-عوامل-نفسية.-ما-أسباب-عدم-إيداع-العراقيين-أموالهم-في-المصارف؟.html
