View Full Version : protect deposits legislation, bankers welcomed, expert: private sector "leadership"

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01-14-2014, 06:52 PM
Funds in a private banks

Parliament seeks legislation to protect deposits and bankers welcomed and expert calls for "leadership" role for the private sector (http://www.almadapress.com/ar/news/24099/%D8%A7%D9%84%D8%A8%D8%B1%D9%84%D9%85%D8%A7%D9%86-%D9%8A%D8%B3%D8%B9%D9%89-%D9%84%D8%AA%D8%B4%D8%B1%D9%8A%D8%B9-%D9%8A%D8%AD%D9%85%D9%8A-%D8%A7%D9%84%D9%88%D8%AF%D8%A7%D8%A6%D8%B9-%D9%88)

Author: ASJ, RS
Editor: BK, RS
2014/06/10 13: 37 [2014/01/10 ]
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The parliamentary Finance Committee, confirmed on Friday, seeking to pass legislation that protects bank deposits to reassure depositors and motivate private banks, while bankers to set up a company called on to open the door to their banks to enter the market more aggressively, he welcomed the financial expert, and stressed the need to allow the cat to exercise "leadership role" in the national economy.

Parliamentary: the Finance Committee is seeking legislation to protect bank deposits

According to the parliamentary Finance Committee member, majda Al-Tamimi, told the (term), a "series of measures adopted by the Commission to improve the economic stability of the Iraqi currency against other currencies," and suggests that "the Central Bank is trying to maintain the stability of banks in particular, through checks and instructions issued from time to time."

Tamimi adds, "the Finance Committee has not only the stability of banks, but also seeks to develop capacity and ensure their participation in the building of the Iraqi economy to genuinely increase the capital through deposits, which often come from different ministries and institutions of the State, as well as citizens ' deposits, and showing that the" owners of these deposits were probably afraid of resorting to public and private banks in particular, the Commission considered the need for legislation ensuring that deposits and protected."

And the parliamentary Finance Committee Member describes, "the Central Bank will be obliged to protect bank deposits through the law that Parliament will legislate him later and allows the citizen or the investor or of the Government itself, to deposit money in private banks without fear or suspicion",

And rectify its "does not deny that many, including governmental agencies, yet kind of distrust of private banks in particular have bitter experiences with them, as happened previously with the Bank after walorkaa Basra, we have both failed, hence there must be law secures bank deposits".

Bank: deposit protection Corporation established to improve private banks

Bankers welcomed their eligibility to Parliament legislation that protects bank deposits, and called for the establishment of a specialized company to open the door to private banks to enter the Iraqi market.

Says Managing Director of United Bank, Mohannad Qassem, told the (term), that of "a modern and sophisticated system to ensure that bank deposits would be through the introduction of private capital contribution" and shows that "establishing a company to ensure that bank deposits had been one of the main demands of the majority of private banks to upgrade their realities and to reassure depositors.

The denominator is the "establishment of bank guarantees, on the contribution of claim several private banks to secure bank loans, contributed to the expansion of lending activity for various segments of the society to promote the national economy", and the "established for the protection of bank deposits added step in the right direction to develop private banks and encourage the various parties to deposit".

Financial expert: recovery of the national economy requires upgrading the role of the private sector

Financial experts supported the proposal to establish a company to protect bank deposits, they antagonized that gives added impetus to private banks and revive the economy.

Financial expert, says Bassem Jamil Antoine, told the (term), "the Government is doing to protect the Iraqi economy individually, without giving the private sector a chance to contribute on this matter," and asserts that "the advancement of the national economy requires the activation of the private sector and his leadership."

Antoine, finds that "legislation of any new law, whether for the protection of deposits or otherwise, should be directed to the private sector, and at the same time to provide support to ensure no cons in this area".

Local study estimated that the capital banks totaled until the end of 2012, a total of 754 billion dinars, compared to more than four billion dinars private banks and investment stocks in the banks operating in Iraq was recorded as at 31/12/2012, about six billion dinars (5 944), the share of State banks including 4 929 billion, compared with 1.018 billion to private banks.

The Iraqi banking system consists of forty-three banks as well as the Central Bank and distributed by property (7) and banks (30) private bank, including seven Islamic add to six foreign banks.

The IMF said in a report released in (21 March 2013) following the conclusion of the consultations held in the Jordanian capital, the delegation of Oman between the Fund and an Iraqi delegation led by the Minister of planning Ali Shukri) that the improvement in the financial sector but said it still needed more efforts by the Central Bank on monetary policy instruments and revision control a Bank and accelerate the restructuring of the banking system.

The IMF called on the Central Bank to adopt progressive measures towards the liberalization of foreign currency offered through auctions held by the World Bank to ensure no repeat of the unrest that hit the capital market in the past year.

The Fund stressed that establishing a national banking system requires the abandonment of the current model, which is dominated by the weak State-owned banks that enjoy preferential treatment to distinguish it from private banks, calling on Iraq to strengthen its public finances to ensure efficiency and transparency in the use of oil revenues.