- All Journals
- Al-Qadisiyah University
- Basrah University
- Kirkuk University
- Mosul University
- The Iraqi Borad for Medical Specialization
- University of Anbar
- University of Technology
- Al Mustafa University
- Al-Zahraa University for Women
- Alnoor University
- Kunooz University
- Misan University
- Ninevah University
- Tikrit University
- University of Al-Hamdaniya
- University of Kerbala
Ataho financial crisis impact on the Iraqi economy, 2008 | ||
| Journal of Research Diyala humanity | ||
| Article 1, Volume 0, Issue 33, 2017, Pages 168-186 | ||
| Author | ||
| mehsin hassan alwan | ||
| Abstract | ||
| The financial crisis experienced by the world today began to appear symptoms during the past year 2007, then began to send signals calls for professionals to address the problem before it is compounded, since some of them predicted the events that have already Nasrha now. The main problem in the orientation of banks and financial institutions in the United States to grant mortgage loans significantly, and the aim of this type of loan to finance the borrowers need to buy real estate of all kinds. This type of loan risk high for lack of cash flow expected for either borrower or project funded by the bank can rely on as a source of repayment of the loan, which is why banks raise the interest rate on this type of loan in order to achieve the highest possible return of the loan and to cover part of the risks that fall under this type of loan. Over time and as a result of entitlement to repayment of these loans, began to borrowers in the face of the problem of inability to pay because of the high value of the obligations of banking, which dates back to the interest rate high in the main, prompting a large part of them to display their properties for sale in order to repay their debts. During this period, the percentage of properties for sale to the limits of an unprecedented, and as a natural result of the excessive display without a corresponding increase in demand for real estate prices began to decline. The primary role and the traditional of any bank is accepting deposits and granting loans, which the bank will attract funds from entities that have a surplus and forwarded to the parties that have a deficit, so the main source of money for the bank are deposits of the parties that have a surplus and you get a return for the deposit of money in the bank, The main use of these funds is loans. From here we can see the beginning of the financial crisis, where banks are facing liquidity problem for non-payment of borrowers' debts, which are essentially funds of depositors, and with the news spread of the crises that began facing banks among depositors, the greater the demand depositors to withdraw their deposits to ensure the recovery of their money in an environment saturated with rumors than the depth of the problem of bank liquidity, but to exceed it to the collapse of some banks such as Bank (Lehman Brothers), which is the fourth-largest investment bank in the United States of America, who at the age of 150 years. In addition, the depreciation of the real estate that banks have financed increased the size of the problem, as the value of the property has become less of the value of the loan granted, these conditions collectively contributed significantly reduce the ability of banks to lend, leading to a significant reduction in the level of consumption and investment spending, which increased the likelihood of recession, if not deal with it quickly. This is why the attempt to restore confidence to the banking system is behind the financial authorities in many countries to pump large sums of money in their banking systems. | ||
| Keywords | ||
| The financial crisis; bank | ||
|
Statistics Article View: 26 PDF Download: 11 |
||