The banking sector is considered one of the most important basic sectors in any international economy, not only for its important role in mobilizing domestic and foreign savings and financing investment that represents economic activity, but also because it represents the most important link of communication with the outside world. Its development and the strength of its situation has become a criterion for judging the soundness of the economy and its ability to attract domestic and foreign capital. And if the banking sector is one of the most important economic sectors, then the Central Bank represents the main axis of this sector, because of its role in managing monetary and banking policy, maintaining financial stability and thus establishing sustainable economic growth.
Encouraging investment requires activating its tools first, which is the banking and financial system, in order to grant medium and long-term loans, whether for the purpose of establishing productive or service projects. This is in addition to localizing joint stock companies and offering their shares for public subscription in order to transfer national savings and make them an effective investment block. Hence lies the basic function of banks that they must perform to achieve high growth equations by activating investments. Also, the expected role of private banks in encouraging investment and development financing operations cannot be achieved in the required manner without a direct monetary policy to stimulate and support weak sectors and direct loans towards projects that are most important to development.
There is no doubt that the insurance sector is one of the important and vital sectors through the main role that insurance companies play in the economic system in general, represented in breaking up the risks that public and private establishments and institutions may be exposed to in order to achieve development and stability in economic activity or to stand as a strategic partner for banks and arm them against default. And giving it enough confidence to expand its financing for large, medium, small and micro projects, in addition to contributing part of its surplus funds in a range of investment forms.
