Government advisor points to weak cash credit ratio in Iraqi private banks

The financial advisor to the Iraqi government, Mazhar Muhammad Salih, explained on Wednesday that the ratio of cash credit to total deposits in private banks may approach the standard ratio of 75%, which banks should reach or at least approach.

Saleh added to Shafaq News Agency that deposits are the basics of traditional banking.

He explained that the market share of 63 private banks does not exceed 15% of credit and deposit operations, while the government banking system accounts for 85% of banking activity.

In the same context, the International Development Bank announced the opening of investment deposit accounts with the aim of serving Iraqi families.

The bank explained, in a statement received by Shafak News Agency, that these accounts offer returns of up to 10% annually, with a monthly payment and cash prizes within monthly draws. Deposit holders also receive free life insurance, facilities to obtain a loan with a deposit guarantee, and a free credit card.

The bank confirmed that the funds will be used to serve the national economy, with a guarantee from the Iraqi Deposit Insurance Company authorized by the Central Bank of Iraq, noting that deposits are one of the most important sources of funds at the level of the national economy and depositors.

Economic statistics show that the number of government banks in Iraq is 7 banks, while the number of private banks is 74 banks, which means that private banks constitute 91% of the total number of banks in Iraq.

Shafaq.com