Iraqi Banking: Loan Guarantee Gives Strength to the Banks
|October 6, 2014||Filled under Iraqi Banking News|
Iraqi Banking News –
Attributed the banking expert reasons for the weakness of the competitiveness of local banks for their lack of credit policy covers the requirements of development, comes with the desire of companies and citizens to obtain liquidity for the establishment of their projects and the development of the Iraqi banking sector in line with the government program, which recognized the importance of providing an environment a necessity for the advancement of trade, finance and banking.
Came in answer to a banking expert Mohammad Ali Jaber question (morning) on the effective participation of the private banking sector in economic development .obin that the volume of deposits in private banks and weak banks modest compared to the government, an indication of the need to support banks to increase their capital to invest product loans and describe why the other in the lack of participation.
Jaber called for creation of an institution to guarantee deposits and counted the means to that give power to private banks in front of the beneficiaries and reduce the vulnerability of trust between customers and Almassarv.oukal that this institution will help banks reduce interest rates on loans and protection from risks her due to the faltering debt are encouraging banks to raise the ceiling on credit also and thus contribute to the actual investment through loans Altnumeih.
Obashon a question about the solvency and size of the capital said that the monetary policy pursued by the central bank to raise capital succeeded in achieving its goals as it launches all banks Special raised to 250 billion dinars for each bank has exceeded this figure in a number of Abannok.oukal Jaber: Here lies the importance of the loan guarantee institution which encourages banks to raise the ceiling on credit and interest rate easing after the availability of liquidity, but cautioned on the very important issue related to Ban lifted capital came at the expense of the profits of shareholders, which requires compensated later and this is what administration is seeking CBI him taking into account the lifting performance Almassarv.
Obin Jaber that the solvency and size of capital through bank deposits will benefit large as strengthen the capacity of banks to buy Treasury Notes and thereby contribute to the implementation of the policy of the central aims to reduce inflation by pulling Alsjulh.ofatt that the most important goals of the Iraqi banking business lies in the employment services and lending and investment as directed deposits to invest to increase the chances of increasing the volume of loans and so on, stressing that these measures contribute to raising the competitiveness for banks to adopt a future investment.
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