With an increase in the number of bank accounts in the country, Iraq’s banking system is gradually regaining citizens’ trust.
Due to the rapid changes in the economy and financial system, banking systems all over the world are facing increasing difficulties. Numerous nations are making preparations to join the International Association of Deposit Insurers in order to safeguard depositor funds and ensure the stability of these systems. This membership is not just a formality; rather, it is a strategic step that will benefit member nations and their banking systems in significant ways.
Keeping money at home rather than in banks has been a strong justification for decades of economic and political difficulties in Iraq. The Iraqi Deposit Insurance Corporation (ICDI)’s membership in the International Association of Deposit Insurers, on the other hand, was a significant step toward increasing confidence in the banking system. Iraq’s citizens’ confidence in banks has significantly improved since its accession, as evidenced by the significant rise in the number of bank accounts and deposits. This improvement upgrades Iraq’s capacity to draw in venture and backing financial development by changing over reserve funds into useful speculations.
Countries cannot function independently in a world characterized by increasing economic and financial interdependence. Countries’ commitment to international cooperation and the exchange of expertise are reflected in their membership in international deposit insurance bodies, which also confirms their unwavering pursuit of financial stability and the safeguarding of depositor funds. This membership is more than just a formality; it is also a strategic investment in the banking system’s and nation’s economic future.
Collaboration among nations: the foundation of deposit insurance International organizations provide a one-of-a-kind platform for member states to share expertise and knowledge. In the area of deposit insurance, national financial institutions can learn from other nations’ successful experiences and avoid some nations’ blunders. The development and modernization of deposit insurance procedures in accordance with international best practices is aided by this ongoing exchange. The national banking system’s credibility and transparency are enhanced when more banks join the International Association of Deposit Insurers (IADI). A nation’s commitment to strict international standards in the field of deposit insurance reassures citizens and investors that their deposits in banks that are members of the deposit insurance system are safe and that the banking system is subject to effective local oversight. In addition to serving as a venue for the exchange of knowledge, international organizations also offer members technical and advisory assistance. International experts can help national institutions assess potential risks, develop and implement effective deposit insurance policies, prepare for financial crises, and more.
By sticking to worldwide guidelines and executing best practices, public foundations can lessen the gamble of monetary emergencies and improve the strength of the financial framework. This stability is not a goal in and of itself; rather, it is a tool for achieving larger social and economic objectives like expanding employment opportunities and increasing economic growth rates. Investors and citizens who have faith in the banking system are more likely to deposit their money in banks. The amount of deposits that are available for investment rises as a result of increased confidence, which boosts economic activity and contributes to sustainable development. Not only does membership in international organizations have an effect on improving financial stability and confidence in the banking system, but it also helps develop the economy. The provision of loans to small and medium-sized businesses, the creation of new employment opportunities, and the financing of development projects can all benefit from an increase in the volume of deposits available for investment.
Malaysia:
As a result of Malaysia’s membership in the International Association of Deposit Insurers, deposit insurance policies were improved and confidence in the banking system was raised. As a result of this accession, there was a rise in the number of bank deposits and improved financial stability, both of which helped the nation’s economic growth.
Korea, South:
South Korea joined the International Association of Deposit Insurers at the conclusion of the Asian financial crisis in the late 1990s. South Korea was able to achieve a rapid economic recovery thanks to its international membership, which helped restore confidence in the banking system and stabilize the national economy.
