Central Bank of Iraq Reassures Depositors Over Banking System Stability
The Central Bank of Iraq (CBI) has confirmed that placing certain licensed banks under supervisory committees or conservatorship is a precautionary regulatory measure and does not mean that a bank is bankrupt or that depositors have lost their funds.
The CBI explained that such measures are intended to ensure the soundness of banks, maintain the stability of their operations, and protect customers’ rights. It stressed that banking institutions are subject to regulatory standards based on international best practices.
The Central Bank also noted that all licensed banks participate in the Iraqi Deposit Insurance Company, which plays an important role in compensating depositors in the event that a bank encounters financial difficulties, in accordance with applicable laws and regulations.
The CBI further emphasized that depositors’ funds are protected and that Iraqi banks maintain sufficient liquidity to manage their operations under both normal and stressed conditions. The ratio of liquid assets to short-term liabilities exceeds 60%.
The Central Bank stressed that it will continue monitoring the performance of banks, particularly measures aimed at ensuring that depositors can access their funds without delay.