BAGHDAD / Economy News ...

The Central Bank of Iraq, to ​​guarantee bank deposits Inc. is a "fund" is committed through which to compensate depositors at bankrupt banks or liquidated, with economic officials promise to move to "the right direction and an incentive" to restore confidence in banks, favored the citizens it had dissipated the impact of their experiences "negative" Previous with private banks.

He said the Board of the Central Bank board member Ahmed Rehn, said that the establishment of a guarantee bank deposits the company as long as the form of the target of the Central Bank of Iraq since 2004, especially since such a company exists in other countries of the world, "noting that" the company is interested primarily to small depositors, who make up the vast slide savers served as senior depositors. "

Rehn added that "the establishment of the company and to embrace the work requires time and mechanisms supported," adding that "the deposit guarantee the company will not be an investment but it will be a fund or making the central bank is committed through which to compensate depositors in general and small especially in the event of bankruptcy of the banks in which the money there or filtered" .

In turn, the financial advisor to the Prime Minister said the appearance of Mohammed Saleh, said that the establishment of a deposit insurance firm step in the right direction to build a discreet banking system has the confidence of depositors through the protection of their rights and encourage citizens to deposit in banks. "

Saleh pointed out that "the participation of government banks in the capital of the Deposit Insurance company can enhance its credit and enable them to pay more compensation to depositors, especially that most of the deposits of citizens in those banks."

In turn, the Finance Committee in the House of Representatives rapporteur Ahmed Hama Rasheed, it said that the Commission will adopt measures that would improve the economic and financial reality in Iraq, including the banking sector development, "noting that" the Iraqi Central Bank seeks to maintain the bank's stability, especially eligibility through regulations issued by the every now and then. "

Rashid stressed that "the Commission is pushing to increase banks' capital, which often come from different official bodies, as well as deposits of varying citizens," pointing out that "depositors in general were wary of turning to the private banks."
Promised a decision parliamentary Finance Committee that "the decision to establish a deposit insurance corporation would be a motivation and stimulus to the movement of the banks and restore citizen confidence and trust," adding that "the Central Bank would be binding under that protection of bank deposits by legal legislation secures the rights of depositors and investors, and even the official bodies." .

Rasheed said that "it will encourage the placement in private banks and eliminates worries them, especially in light of previous bitter experiences, as happened with the bank Basra and the Warka, who announced Avlasshma."
In turn, the government employee Hassan Shaker, the presence of a guarantor company deposits can improve the image of the private banks, "noting that" re-citizen eligibility banks and trust need to be relatively long time definite guarantees from the state, represented the central bank, not to repeat the previous negatives that still depositors pay for it in light of parking Central Bank spectators for their suffering for years. "

For its part, director of the school, Khawla Rashid, the presence of government guarantees to protect the deposits of citizens can restore confidence gradually banks eligibility, which began its work to provide good services and facilities several adoption of modern technologies, "usually said that" State-owned banks are still lagging behind technologically and suffer routine that made citizens averse them. "

The central bank announced in (the seventh of June 2016) Cabinet approval for the establishment of a deposit guarantee in the government and private banks with a capital of 100 billion dinars, while the company aims to stimulate citizens to deposit their money in banks rather than Aktnazha, confirmed funds chunky for citizens outside the banks of more than $ 30 trillion dinars.

The Iraqi private banks association announced (October 2015) that the ratio of deposits to the government banks, ranging from 65 to 68 trillion dinars, of which no more than 22 trillion and deposits of private banks.

The banking system in Iraq consists of 54 banks as well as the Central Bank and distributed according to government ownership between 7 and 23, including nine private commercial Islamist addition to the 15 branches of foreign banks.