Bank Deposits Retreated, 12 FEB

 Bank Deposits Retreated

 
Economic 1225/02/12  Yasser Al –Mitwalli   Iraqi banks have gone through a golden period in the field of returning confidence by depositors in banks after partial stability was achieved with a monetary policy by the central bank in supporting the banking sector that contributed greatly to encouraging depositors in reconciliation with banks.
 
Here, the topic reduced exclusively (the public deposits) because of its importance in motivating banks to contribute to development programs by expanding loans.
 
It is useful to note that the banking sector has gone through challenges after the stage of change, especially in the field of borrowers ’failure to pay their loans that help them.
 
On the other hand, it led to the paralysis of the banking activity, and a part of the banks were crushed.
 
To the secretariat, the efforts of the central bank years ago resulted in the return of confidence between the parties to the process, the depositors, and the borrowers.
 
However, reports indicate that  deposits decreased in Iraqi banks to (123 trillion dinars in November 2024, which is the lowest level in 22 months), according to these reports.
 
But what happened to the return of this loss of confidence?
 
The answer is definitely related to imposing US sanctions on a large number of these banks, and
 
here is an analytical of the reasons, as I see it, has nothing to do with whether the readings are right or without the right to not explain the real reasons behind these sanctions that I am certain that there is a political side behind the decisions, with acknowledgment of violations. Do not deserve this harsh decision.  Perhaps some depositors' concerns about the return of the chaos of the clouds indicating the return of loss of confidence and fears of bankruptcy of banks.
 
On the other hand, the Central Bank indicated that deposits growth by 4.2 percent during the third chapter of 2024 compared to the same period of the previous year,
 
but what increases the mud with the worse of confusion and confusion, which promoted it from the loss of liquidity that may disrupt lending and productive projects, with funds turning into investments An alternative like real estate and gold.

From here, banks must develop their banking services to
 
     ensure the continuation of the market and
     adhere to restoring confidence in addition to developing and
     expanding the role of the deposit guarantee company, transparently and clearly.
 
Perhaps the repeated financial crises that some countries have gone through have been able to diagnose the defect and find solutions while raising the level of banking culture among the public in full transparency, regardless of the size and details of the financial crises to ensure their exception.
 
Banks need to develop their media awareness offices.     https://alsabaah.iq/110029-.html