Recovery of Damage For Lost Profits In Bank Deposit

Abstract

Iraq's banking system is different in that it includes nationalized banks, private banks, foreign banks, Islamic banks, particular development banks, and cooperative banks. Currently, the size of loan defaults in the banking industry is enormous. However, the popular view is that loans and advances have a higher recovery rate. This article aims to explore the problems governing banking operations in Iraq and summarize the provisions of Iraqi legislation relating to the recovery of bank profit losses. According to the study given in this example, lending practices with Iraqi banking instruments are similar to those of traditional banks with comparable products. Moreover, the study identifies critical strategically weak connections in the banking sector's development, which has impeded the country's overall economic progress. The results indicate that the rewards under this legal system in Iraq include insurance against loss of profits resulting from bank interest. This situation is problematic on the ground, especially for non-fixed or non-fixed deposits. In addition, demonstrating earning potential is not an obstacle for the buyer in this scenario. However, when the bank deposit contract carries interest and the customer does not pay the amount of interest due to the bank's bankruptcy. The bank loses an opportunity to recover only by proving that the customer has breached the contract terms.