The central bank is counting on the company "security" to compensate depositors of banks "losers"

The Central Bank of Iraq, the possibility of compensating depositors of citizens in banks, "losers" in case I worked, "Deposit Insurance" company, while Bankers attributed the reluctance of private banks to "liquidity squeeze" as a result of contractors and importers were unable to pay what it discharged.

A member of the Board of Directors, Ahmed Rehn, said that the Deposit Insurance Corporation, or what is meant by the unity of deposit guarantee, you need time, even working after gathering the necessary capital, "adding that" the task of that unit are summarized compensate depositors in the loss-making banks. "

He added Rehn, that "the company in the event of its work will participate in the compensation of depositors in the loss-making banks after a number of their own financial operations to be able to it," noting that "the Deposit Insurance Corporation will take care of a lot to small depositors will be paid all of their deposits, that are paying most of the deposits medium, but the subject of senior depositors requires other measures to compensate them. "
For his part, Managing Director of the Bank Union, Aqeel trouble maker, said that private banks in general is facing the problem of lack of liquidity, because borrowers contractors, importers did not get their dues from the government is what made them slow to refund discharged for banks, "adding that" some branches of the Central Bank did not due to domestic banks and their deposits. "

He pointed out trouble maker, that "it was born big problems to domestic banks with depositors In her work," she returned that "the government should private banks supported by dues contractors and suppliers Exchange to raise the proportion of liquidity in the domestic market and enable them to repay their debts and stroll banking activity."

In turn, the decision of the parliamentary finance committee, Ahmed Hama Rasheed, said that banks are required to give deposits to clients, "noting that" some banks experiencing administrative problems that the Commission was forced to file a complaint thereon to the Ministry of Finance. "

He stressed Rashid, that "private banks monitored by the CBI, which give him a monthly budget," pointing out that "the central bank may use its powers to suspend the operation of any bank acting his money out of contexts, and be liquidity has less of the deposit, and the declaration of bankruptcy."

He predicted the decision the parliamentary finance committee, that "depositors in failed banks crisis resolved when the work of the Deposit Insurance Corporation," stressing that there are "many experiences of this kind in the neighboring countries and the world."

Meanwhile, a member of the Iraqi National Business Council, Firat Habib, said that the problem facing temporary banks, because they suffer from the deposits of the crisis and the influx of liquidity, not losing for being, "calling on the central bank to" tighten its supervision and follow-up on the banks, particularly the civil and ensuring liquidity constantly to avoid problems. "

Habib felt that "the deposit guarantee law firm will be strongly Banking Act of censorship hand and keep depositors' money and speed up the response to any problem faced and restore confidence quickly to it, especially since the administration officially sanctioned."

He said a member of the National Business Council, that "the banks are working on the recovery of private high to provide liquidity and address the imbalance of financial amounts loan funds and grants depositors amounts that request one at any time they wish," noting that "the central bank put some banks under his tutelage until they correct their work and ensure the rights of citizens. "

Habib stressed that "slough some banks from paying the full amount requested by the depositor under the pretext of lack of financial liquidity constitutes a violation of the laws and calls for the intervention of the Central Bank of Iraq," he returned to "Supervision Department and the banking of the Central Bank of Iraq is responsible for monitoring the safety of liquidity of financial markets and its flow and consider complaints and to accelerate the adoption of measures to verify due to non-payment of the banks and the amounts requested by the owner of the funds deposited in the custody of those banks and at any time he pleases. "

The Central Bank announced, in (the seventh of June 2016), for approval of the Cabinet set up a company to guarantee deposits 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 money chunky citizens outside 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 property between the seven state-owned and 23 private businesses, including Islamic nine in addition to the 15 branches of foreign banks.