The College of Law discussed the master’s thesis entitled “The Role of Deposit Companies in the Banking System – A Comparative Study -” the thesis was submitted by the student Bassem Shati Farhan Al-Taweel.
The thesis aimed to show that bank deposits are among the oldest operations carried out by banks, and as one of the most important elements in the economic development of the country, being the only polarizer for the financing process, as they collect funds through deposits and savings, as the importance of this study stems from the role it plays Bank deposit protection systems provide the confidence factor necessary for the growth and prosperity of financial transactions and the stability of the banking system.
The study also showed that to enhance the confidence of depositors in the banking system, it is necessary to research the role of bank deposit insurance companies and to clarify their provisions and role to strengthen this confidence, especially since the banking system in any country is exposed to financial crises and overtime needs to restore confidence and this certainly has a positive impact on increasing Benefits and revenue for economic development and banking income enhancement
The researcher reached a number of results and recommendations, the most important of which is that the legislative shortcomings and modernity in the application of this system have led to the lack of clarity in the role of the Iraqi Bank Deposit Insurance Company in achieving banking confidence, in terms of increasing the flexibility of credit policies, stability of the banking system, attracting savings, as well as protecting depositors.
Therefore, the company’s activity must be given a precautionary role as well as a remedial role in the event that it notices losses in these operations or delays in its work, as it must intervene directly and in a timely manner, without leaving matters until the issuance of the guardianship and bankruptcy decision. Thus, the insurance companies have a real and effective role in maintaining depositors’ money.
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