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Baghdad: Banks refuse to pay deposits to customers and .. «Central» keeps money to cope with inflation
4/27/2015
Baghdad,
attributed the bankers not to most government and private banks commitment to the return of deposits to the customer within a specified time to the reluctance of most borrowers to pay their loans because of the lack fulfill government's financial obligations, the creation of a "lack of liquidity", as pointed out that the central bank is granted for the time being Benefits for banks closer to 4 percent of the size of their deposits, indicated that those benefits reached earlier to 19 percent.
He said the former head of the private banks association Abdul Aziz Hassoun told the "world", that "private banks facing scarcity of liquidity, as the borrowers of contractors, importers did not get their dues from the central government what made them slow to return the loans to banks, and some branches of the Central Bank did not return to the civil and deposits banks ", noting that" it was born big problems with those banks. "
He said Hassoun, " should the central bank should take swift measures to solve that problem is to re-money private banks through cash reserves "in addition to" necessity that the government go regardless dues contractors and suppliers in order to raise the proportion of cash liquidity in the local market. "
With regard to the benefits size, pointed Goldfinch that "the Central Bank grants at present benefit worth 4 percent of domestic banks for the size of their deposits."
For his part, said banking expert on behalf of Jamil Antoine "the world" that "the central bank gives to private banks Interest on deposits to control inflation caused, as it is that one of the tools in the creation of a state of deflation, "explaining that" the central bank is forced sometimes to give large its benefits for the banks could reach 19 percent of the volume of deposits, as happened in 2007, when inflation rose. "
He added Antoine, that " those temptations provided by the central bank is forcing private banks on their deposits placed with the central bank and not to do its part of development, "pointing out that" the benefits given by the government banks to depositors size is estimated at 3 percent annually either private banks and so the interest rate to 5 percent, while taking the benefits to borrowers up to 15 percent. "
He noted that "the Central Bank grants license to open a bank, provided that owns the bank capital of no less than 250 billion dinars," as the central bank retains 15 percent of that money to guarantee deposits of people in the bank and the rest he can dispose of it.
According to the document for the banking system indicators in Iraq got "the world" by the total assets of banks in Iraq amounted to (212) trillion dinars end of 2014, while the volume of public deposits in banks reached (24.3) trillion dinars in 2013, total credit extended by banks for various sectors (32.6) trillion dinars.
In turn, the parliamentary Finance Committee member Jabbar Abdul Khaliq said that "banks are obliged to give deposits to its clients," noting that "some banks suffer both administrative problems, and we had to raise the complaint against her to the Ministry of Finance."
He said Abdul Khaliq "The private banks monitored by the Iraqi Central, where banks provide monthly budget to the Central, and the latter use its powers to stop the work of the bank if the disposal of his money out of contexts, and while finding that liquidity has less of deposits will declare bankruptcy."
so said a member of the Committee Massoud Rostam that "the Commission wanted to avoid future problems such as not to give the banks deposits, install a paragraph in the budget to enact a law on behalf of the (deposit guarantee)," adding that "with the neighboring countries and the world at large experiences in this subject, and has advanced laws on the protection of Customer deposits with banks. "
Rustam and stressed that "the Finance Committee formed a committee to discuss the mini inside what is being said by some private banks stumbled from the return of deposits to its clients."
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