CBI announces a rise in the percentage of cash credit to total deposits for banks operating in Iraq

Economy

4-03-2025, 13:04

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INA- BAGHDAD

The Central Bank of Iraq CBI announced on Tuesday that the percentage of total monetary credit to total deposits of banks operating in Iraq has increased.

“The credit-to-deposit ratio is one of the most important indicators used to measure the liquidity of banks, as this ratio compares the volume of credit granted by banks compared to their total deposits, as this ratio recorded an increase in the fourth quarter of 2024 to (59.3%) after it was (51.9%) in the fourth quarter of 2023,” the Central Bank said in a statement received by the Iraqi News Agency (INA).

CBI added that “the rise in this ratio indicates that banks are effectively utilizing their customers' deposits to make profits by granting credit, and it is possible that part of the increase is due to the increase in bank credit provided to the government and the central bank.”