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10-04-2014, 02:49 AM
Expert: loan guarantee gives power to the banks (http://www.imn.iq/news/view.51764/)

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02/10/2014 7: 47

A bank expert attributed the reasons for the low competitiveness of local banks for lack of credit policy covers development requirements, this comes with the desire of companies and citizens to get liquidity to create their projects and the development of the banking sector in line with the Government programme, which recognized the importance of providing an environment that allow for the advancement of trade and finance and banking.

It came in answer to banking expert Mohammed Ali Jaber on the question for (morning) on the effective participation of the private banking sector in economic development. and that deposits in private banks is weak and modest compared to state banks, in an indication of the need to support the banks to increase their capital to invest in productive loans as another reason for the low participation.

Jaber called for the creation of an institution for deposit guarantee promise means that give power to private banks to beneficiaries and reduce the vulnerability of trust between customers and banks,

said that the Foundation would help banks reduce interest rates on loans and protection from the risks caused by faltering debt are encouraging banks to increase credit limit also thereby contribute to actual investment through development loans.

and on the question of solvency and capital said that the monetary policy pursued by the Central Bank to raise capital had succeeded In achieving its objectives so that all banks have their own submission to 250 billion dinars to each bank has exceeded the number of banks said Jaber:

here lies the importance of enterprise loan guarantee encourages banks to increase credit limit and interest rate reduction after the liquidity but cautioned on the extremely important issue of raising capital came at the expense of the shareholders which requires later claimed that the Bank's management The central mechanism, taking into account the performance sinks.

between Jabber to solvency and capital through bank deposits will bring great benefit to strengthen the capacity of banks to buy Treasury remittances and thus contribute to the implementation of the central policy aimed at reducing inflation by withdrawing liquidity.

the main objectives of the banking business is in operation and lending and investment where deposits to investment to increase your chances of increased loan volume and so, stressing that such actions contribute to increase the competitiveness of banks A future investment.

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