Warka Bank, Basra International Bank: Bankrupt
Posted: June 15, 2011
Government withdraw liquidity and establish private banks on the brink of bankruptcy
Iraqi clients of private banks Hit a fever of fear and anxiety after awakened Iraq news bankruptcy two Iraqi private banks known, which has put its work in Iraq for some time in quite some time, as the Warka Bank for Investment, one of the leading private banks, Iraqi and faced the problem of substantial financial liquidity led the inability of deposits and liquidity may be a synonym of the concept of bankruptcy in the world of banking terms to coincide with her and the same time the Declaration of Basra International Bank inability to cash and the loss of financial liquidity.
According to the description of an observer economic activity of private Iraqi banks, that one of the most important private banks, Iraqi witnessed the withdrawal of more than $ 20 million from its accounts, leading to hampered in its banking operations, which represents the amount a bank deposit of a large number of customers in the bank, in a time of the other banks withdrawals big banking by depositors, fearing for their deposits if I got a similar situation to the situation of the Warka Bank or Basra International Bank.
This phenomenon is economic is no stranger to the banking sector in the world, but new to the banking sector, the Iraqi government, according to Director of the Association of Iraqi banks Abdul Aziz Hassoun is accused of, Universal access, such as this crisis came as a result of the government to withdraw large sums of cash from a bank of Warka, Basra, and two of the biggest customers deposit the government for the rest of the bank’s eligibility, the process of withdrawing cash that was a large amount of by the government and was contrary to the conditions of deposit banks but the government’s authority was the biggest rejection of banks or resorting to the judiciary to resolve the situation, especially since it was too late was signed by two banks into the trap of dealing with a stronger party authoritarian ruthless weaker party does not take into account the circumstances.
These events coincided with the issue of Trade Bank of Iraq and accusations of Prime Minister addressed to the director, who fled to Beirut, all of these banking issues, which I got at one time rocked consumer confidence sinks Iraqi civil what caused the wave of the withdrawal of bank deposits from private banks, and consequently, the command will reflect negatively on the local economy.
Central Bank of Iraq for his part on the interference to address this crisis, Iraqi bank, especially since he oversees the management of the Warka Bank and Basra International Bank after it swallowed two banks had the bulk of governmenttransactions with merchants and the Iraqi contractors and companies operating in Iraq, Bob Moses, director of Iraqi banks in the United the 12 private banks, said: “opacity sentenced the previous trading and in the light has been given preference for private banks to other banks and the government transactions with private banks, coupled with the cruelty and lack of confidence, and today these banks exposed to a crisis of confidence will affect their activity.
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