journal of sustainable studies joss
The effect of insurance on bank credit
A field study for the office of the National Insurance Company and Al-Rasheed Bank in Dhi Qar Governorate
(2013-2017) AD
Haider Abbas Aziz Al-Husseinawi
Assistant Lecturer at Imam Jaafar Al-Sadiq University (peace be upon him) Dhi Qar Branch
Mohsen Nasser Riyali
Assistant Lecturer at Imam Jaafar Al-Sadiq University (peace be upon him) Dhi Qar Branch
Abstract:
The study seeks to learn about insurance and the effects it has on bank credit; insurance plays an important role in economic and social activity, since of the most important and significant savings receptacles of the economy through: the collection and surpluses of premiums, accumulated capital and reserves and savings, and investment In all spheres of life, as well as providing services to individuals, protecting them and securing them from different dangers.
Bank credit is part of the banking business, as banks grant loans and facilities to their customers, the fact that bank credit is one of the most important traditional sources of finance for its requisitioning companies. The banks are designed to grant credit for profit, and the difference between banks and insurance companies For premiums, banks see the retention of premium amounts, better than paying them to insurance companies, and merely requesting guarantees from borrowers.
They disagree with the profits, as the insurance companies refuse to share their profits with the banks in exchange for their loan insurance. Insurers only provide insurance coverage for banks, and banks are a cycle of economic and financial development for any country, reflecting its economic and financial systems As the deanship and the hub of the economy.
Bank credit Insurance is one of the most important topics in the banking arena for the past few years. Due to the financial crises in the most countries during the 1980s, many banks have been bogged down.
The work of the insurance and banking sectors continues to require the development of its activities to keep pace with economic and social developments and development programmer in order to upgrade developed countries.