News, Rumors and Opinions Late Thursday Night 2-6-2020

KTFA:

Don961:  A relative view of the banking indicators

Wednesday 05 February 2020

Dr.. In the name of Brahimi

 The concept of banking intensity refers to the population of each bank in a country and is one of the banking indicators adopted in economic and financial analysis, and then whenever this indicator falls, this indicates the spread of banking habits, in the European Union this indicator scored (1500) people per bank and accordingly it is better Of it in the United States, where five thousand people registered for each bank, except that the forms that some research suffers from are taking the index absolutely without looking at the specificity of the economy in terms of degree of financial depth or technological progress the user. 

Therefore, we find a lot of people interested in banking issues and even some officials believe that this indicator in Iraq, which amounts to ten thousand people, will decline for each bank, and they will make recommendations on improving it by increasing the number of banks and banking branches in order to achieve this. And its privacy.

The number of banks in Iraq is currently (76) banks, knowing that the number of their branches combined is close to (1310) branches, and this matter will definitely improve the percentage of banking density in Iraq, but the most important question is to what extent will be achieved that? 

To know the answer, it is necessary to return to the previous question, and within the framework of the answer a number of indicators should be reviewed, including the percentage of cash leakage that reaches in Iraq to about (70%), which represents the percentage of what is in the currency outside the banking system out of the total issued currency, and this it indicates weakness in dealing with the banking system despite its improvement as a result of the numerous measures taken by the central bank, especially the salary settlement project, in addition to that (80 percent) of the deposits are almost with the Government banks

On the other hand, the percentage of bank liquidity is around (90 percent) and it exceeds the standard ratio that was set within the requirements of Basel, and this means that banks were unable to use the available liquidity due to them on the one hand, due to the high hedging on the one hand, and the tightness and instability of the market on the other hand.

We see the need to overlook the progress achieved in the work of the banking sector. The index of banking intensity with relative measurements is high for us, not the opposite, as many believe.  LINK

Don961:  The central achieved achievements in the payments system

Wednesday 05 February 2020

Baghdad / Al-Sabah

The Central Bank of Iraq revealed achievements in payment systems in the Payments Department that included a group of hubs.

He added in a bulletin on the central bank's website and followed by "Al-Sabah" that the most important achievements in payment systems in the Payments Department in Iraq were represented by activating the IBAN, which means (International Bank Account Number) on the payment system (RTGS-ACH), which is defined as the international bank account number and based on international special specifications, it is a special pattern of bank customer account numbers that allows its users To verify the validity of the account number transferred to it, and the banks were instructed to approve the unified IBAN in internal transfers as of 1/2/2017.

International standards

He referred to "starting work to assess the readiness of the Iraqi payments system in line with international standards (PFMIs) for the World Bank to improve payment and settlement systems in Iraq within the agreement with the World Bank, which deals with electronic payment systems in the country."

He indicated that the mechanism of paying the salaries of employees of institutions and state departments has been reformed by localizing their salaries with bank accounts and this bank is keen to meet all requirements to implement the process of localizing salaries in banks and converting the system of paying salaries to civil employees, including allocations and benefits, to a system electronic".

Successful localization

He pointed out that it is in this sense that "the Central Bank of Iraq, in cooperation with the banks, sought to bring this project into existence and the success of the localization process for salaries, and work has begun to localize the salaries of the bank's employees, so that the circular will be circulated to the rest of the ministries and all state departments during 2017."

He continued, "Enhancing the role of payment systems in financial inclusion through digital services provided by banks and electronic payment services providers, as it represents an important dimension in the central strategy and automation of work through the use of electronic payment tools and encouraging the use of financial and banking services provided by banks and electronic payment services providers And it supports small, medium and micro enterprises and facilitates their access to finance. "

In addition to "activating electronic payment processes between ministries and government institutions", as well as "evaluating banks and providers of electronic payment services technically, through the evaluation of technical aspects, electronic services and basic banking systems through which it is inferred at the level of banking efficiency in providing electronic services To customers. " LINK

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MarkZ: 

@originalmarkz: No Friday 2/7/2020 stream this week. Mr. C will be joining us on Monday morning. m.twitter.com/originalmarkz

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Courtesy of Dinar Guru

Vital Brad  ...the prime minister Allawi he spoke to the demonstrators...I think it [the speech] does a really good job of portraying where his heart's at and the change that he wants to make for the people of Iraq...I think that is a wonderful speech...they're wonderful words but being in this so long there have been a lot of prime ministers that have said wonderful words.  Action is gonna be what really separates whether what he's saying is honorable and true or whether he's just giving lip service.  But I really was touched by this speech...

Lynette Zang: 

Money Printing Fails to Stop the Global Slowdown

Streamed live 7 hours ago

In the recent World Economic Outlook published by the IMF (International Monetary Fund) they state that “markets have again been driven by two main factors: monetary policy and investor perceptions about trade tensions.”

And so, regardless of the slowing global economy, most stock markets are at or near, historic highs with valuations at nosebleed levels levitating on a tsunami of central bank money printing.

Which has enabled a global rise in zombie corporations that are unable to pay debt out of profits, but rather take on more debt to pay the debt they can’t afford to pay.

Why would a bank extend more debt to these effectively bankrupt companies? To avoid having bad loans show up on their books and making the truth visible to the public.

What is the central bank response? Even though insanity is doing the same thing yet expecting different results, they seem to think doubling down on failed policy will somehow work. Though personally, I don’t think they really believe this, I just think they don’t know what else to do.

I’d say they are between a rock and a hard place. What’s the solution? Real, savings based, indestructible, widely used money, physical gold and silver in your possession. STAY IN THE KNOW!

https://youtu.be/RCvcNncbqY8?t=5