Financing of the Capital of the Bank Deposit Guarantee Company A Legal Study in the Light of the Iraqi system of Bank Deposit Guarantee

Doi:https://doi.org/10.37940/JRLS.2023.4.2.4

Abstract

The financial resources of the Iraqi Deposit Insurance Company are formed, according to the provisions of the Bank Deposit Guarantee order no. (3) of 2016, from the contributions of the banks covered by the guarantee system from the regular subscriptions paid by the participating banks, according to the specified percentage to be paid for the deposits that are subject to guarantee with the bank, as well as the investment returns made by the company and the financial grants that are provided to it from others.

In light of this situation, the legal regulation of financing the capital of the bank deposit guarantee company is flawed by an important problem, related to the fact that it is a company established taking the form of a joint-stock company, which means that the company is subject to the general rules that regulate companies in a general manner which is mentioned in the Iraqi Companies Law no. (21) For year 1997.  In this case, provisions may be applied that are inconsistent with the purpose for which this company was established, which requires work to resolve the conflict between the provisions of the companies law and some of the special provisions stipulated by the bank deposit guarantee system, and some other legislation such as the Iraqi banks law and central bank of Iraq law.