The Role of the Iraqi Company for Deposit Insurance in Reducing the Hoarding
DOI:
https://doi.org/10.59992/IJFAES.2025.v4n7p11الكلمات المفتاحية:
Deposit Insurance Companies، Cash-Hoarding، Bank Deposit Volumeالملخص
The Iraqi Deposit Insurance Corporation was established in 2019 to protect the funds of small depositors in the event of a bank's insolvency or bankruptcy. Another goal of its establishment was to encourage Iraqi citizens to deposit their money in banks instead of hoarding it at home. The first section of the research methodology discussed the importance, objective, and hypothesis of the research, while the second section highlighted the role of deposit insurance companies, specifically the Iraqi Deposit Insurance Corporation, as well as its role in reducing the phenomenon of hoarding money outside the banking system. The third section compared two commercial banks focused on investment, namely the Iraqi Middle East Investment Bank and the Iraqi Investment Bank. Their final account data was analyzed, specifically the volume of deposits for the six years prior to the establishment of the Iraqi Deposit Insurance Corporation in 2019 and four years after its establishment. It was concluded that, to date, the Iraqi Deposit Insurance Corporation has not played a significant or clear role in increasing the volume of bank deposits. The fourth section addressed the most important conclusions and recommendations.
المراجع
1. Abu Bakr, Ahmed Othman, “Deposit Protection System in Islamic Banks,” First Edition – King Fahd National Library – Jeddah / 2
2. Aidi, Walid, "Deposit Insurance Companies and Their Role in Protecting the Banking System and Deposits," a study submitted to the Central Bank of Iraq, 2016.
3. Al-Arj, Raafat Ali, “The Importance of the Deposit System in Strengthening the Financial Safety Net,” Unpublished Master’s Thesis, Faculty of Commerce, Palestine University, 2009.
4. American Psychiatric Association (2013). Diagnostic and statistical manual of mental disorders (5th ed.). Washington, D.C.: Author.
5. Anginer, D., Bertay, A. C., Cull, R., Demirgüç-Kunt, A., & Mare, D. S. (2019). Bank regulation and supervision ten years after the global financial crisis. World Bank Policy Research Working Paper, (9044).
6. Berrospide, J.M. Bank Liquidity Hoarding and the Financial Crisis: An Empirical Evaluation. FEDS Working Paper No. 2013-03.
7. Binswanger, M. The finance process on a macroeconomic level from a flow perspective: A new interpretation of hoarding. Int. Rev. Financ. Anal. 1997, 6, 107–131. [CrossRef]
8. Cull, R., Senbet, L., & Sorge, M. (2005). Deposit insurance and financial development. Journal of Money, Credit and Banking, 37(1), 43–82
9. Demirgüç-Kunt, A., & Kane, E. J. (2002). Deposit Insurance Around the Globe: Where Does It Work? Journal of Economic Perspectives, 16(2), 175-195.
10. Demirgüç-Kunt, A., Kane, E. J., & Laeven, L. (2020). Deposit Insurance Database. The World Bank.
11. Frost, R. O., & Gross, R. (1993). The hoarding of possessions. Behaviour Research and Therapy, 31(4), 367-381. http://dx.doi.org/10.1016/0005-7967(93)90094-B.
12. Frost, R. O., Steketee, G., & Tolin, D. F. (2012). Diagnosis and assessment of hoarding disorder. Annual Review of Clinical Psychology, 8(1), 219-242. http://dx.doi.org/10.1146/annurev-clinpsy-032511-143116.
13. Grisham, J. R., Frost, R. O., Steketee, G., Kim, H. J., & Hood, S. (2006). Age of onset of compulsive hoarding. Journal of Anxiety Disorders, 20(5), 675-686. http://dx.doi.org/10.1016/j.janxdis.2005.07.004.
14. Ibrahim, Ismail Ibrahim. Naji, Hoda Mohammed. "The Deposit Insurance Corporation - A Comparative Study." Al-Mohaqiq Al-Ilmi Journal of Legal and Political Sciences - Issue Four, Year Eight, 2016.
15. Ioannidou, V. (2019). A New Look at Deposit Insurance, Risk-Taking and Bank Failures. Review of Finance, 23(6), 1103–1139.
16. Kang,S.; Hwang, I.; Song, S. Cash hoarding: Vice or virtue. J. Int. Financ. Mark. Inst. Money 2018, 53, 94–116.
17. Klontz, B. T., & Britt, S. L. (2012a). Financial trauma: Why the abandonment of buy-and hold in favor of tactical asset management may be a symptom of posttraumatic stress. Journal of Financial Therapy, 3(2), 14-27. http://dx.doi.org/10.4148/jft.v3i2.1718.
18. Klontz, B., & Klontz, T. (2009). Mind over money: Overcoming the money disorders that threaten our financial health. New York, NY: Crown Business.
19. Lu, W., Huang, J., & Musshoff, O. (2015). Climate threshold, financial hoarding and economic growth. Applied Economics, 47(42), 4535-4548.
20. Lu, W.; Huang, J.; Musshoff, O. Climate threshold, financial hoarding and economic growth. Appl. Econ. 2015, 47, 4535–4548. [CrossRef].
21. Mishkin, F. S. (2019). The economics of money, banking, and financial markets. Pearson education.
22. Sharma, P., & Kushwaha, G. S. (2017). Impact of money hoarding behaviour on economy and individual financial health: A study. International Journal of Economic Research, 14(9), 79-91.
23. Tolin, D. F. (2011). Understanding and treating hoarding: A biopsychosocial perspective. Journal of Clinical Psychology, 67(5), 517-526. http://dx.doi.org/10.1002/jclp.20795.
