Call for legislation law to protect citizens’ deposits in private banks

5-28-13 Almada News: Banking experts believe that legislation of a special law to protect citizens’ deposits in local banks pay a lot of owners of capital locals and foreigners to deposit their money in private banks, increasing the proportion of financial liquidity that will be invested to support projects of the national economy.

He welcomed the economic expert Majid picture the idea of ​​legislation law to protect people’s money in the banks, pointing to it in the public interest.

He said Suri in his speech to the extent that “the private banks do not pose any danger for the deposits of citizens in the event of legislation law to protect these deposits at banks,” explaining that “the private banks have liquidity large to enable them to invest funds of citizens and achieve huge profits, but unfortunately the law does not allow her development funds, with the presence of incorrect allegations question Bslukih of private banks as the private sector is trying to gain money quickly.

“We support the existence of banking supervision to ensure the rights of citizens, but call to facilitate the work of private banks and not put المعرقلات the front that lead to many negative outcome bear burdens citizens.

For his part, banking expert Abdul Aziz Hassoun that the idea of ​​the enactment did not come against the backdrop of declaration of some private banks go bankrupt but it is the law applied in the countries of the world and the work is done by according to certain mechanisms include the compensation of citizens according to the recipe depositor if low-income recovers his full The investor are given a percentage of his money.

He said in an interview to the extent: that lay the foundation for legal materials will protect the deposits of citizens and ensure their safety is not in private banks only, but even includes banks, noting that the legislation of the law and to apply it comes in an attempt to encourage citizens to deal with the banks, deposit and investment.

To a confirmed member of the Finance Committee Haitham al-Jubouri on a series of measures adopted by the Finance Committee to improve the economic reality of the stability of the Iraqi currency and the corresponding other currencies, focusing on private banks in particular.

He told the news: that the Finance Committee has not only the stability of the banks, but is trying to develop those private banks and work on their participation in building the national economy by increasing their capital that comes from the Ministries of State and its various institutions, as well as deposits of citizens, noting: that these deposits Perhaps the fear of recourse to the banks, so there was no need to legislate a law guarantees and protects these deposits.

He added: that the central bank would be obliged to protect those deposits through law which Sicherah the Parliament, under which will be a citizen or investor or the Iraqi government itself able to deposit their money in private banks without fear. He explained: the fear of private banks is still ongoing because of the bitter experiences obtained previously with the Bank of Basra and Warka, who announced إفلاسهما, so the law should be legislation can secure these deposits.

And called a member of the Finance Committee MP / coalition of Kurdish blocs / Najeebeh Najib, the earlier the federal government and the central bank need to financially support the Warka Bank to be able to restore financial deposits of citizens.

Najib said in a press statement that the topic of the Warka Bank declared bankruptcy more than a year ago with the Central Bank of thorny and complex, as the central and placed under the guardianship of the implementation of the judicial decisions of the Court of banks, but they could not refundable deposit of financial citizens.

She added: There are many complaints came from citizens and business depositors their money in Warka Bank claim from which to retrieve their financial rights, requiring the federal government to provide financial support to the Warka Bank to be able to recover deposits like some governments in the countries of the world.

This Warka Bank has announced in the past year for bankruptcy, which led to put it under the commandments by the central bank after the failure of talks with the Bank of English was intended to buy the bank.

The association of private banks confirmed that the proportion of deposits in government banks ranged from 65 to 68 trillion dinars, of which 22 trillion dinars deposits of private banks.

It consists of the banking system in Iraq from forty-three banks, as well as the Central Bank and distributed by the property (7) government and banks (30) waged banks including (7) Islamic banks in addition to (6) of foreign banks.

Previously, the International Monetary Fund called on the Iraqi Central Bank to take measures to gradually towards the liberalization of foreign exchange through auctions held by the Bank so as not to repeat disorders suffered by the financial market in the past year.

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