Baghdad — Iraq’s Federal Commission of Integrity has opened a broad investigation into liquidity pressures at major state-owned banks. The Iraq banking investigation focuses on large loans, financing exemptions, and the movement of public funds.
The probe centers on Rafidain Bank and Rasheed Bank, two of Iraq’s largest state lenders. Investigators are reviewing commercial loans and financing packages worth at least 1 billion Iraqi dinars. They are also examining whether banks followed lending rules and secured sufficient collateral.
Specialized financial teams are checking loan files against regulations issued by the Central Bank of Iraq. They will assess how banks approved major credit facilities and whether borrowers met required conditions. The review could also determine whether officials or borrowers face administrative or legal responsibility.
Investigators are paying particular attention to companies that received exceptional financing approvals. They are examining ownership structures and the reasons behind special exemptions. The review will also determine whether borrowers used the money for approved projects or redirected it elsewhere.
The investigation also covers older banking decisions linked to previous government policies. Some files reportedly date back to administrative approvals issued by earlier government and Finance Ministry officials. Investigators want to establish whether those decisions complied with banking regulations at the time.
Meanwhile, authorities are examining concerns over liquidity reports submitted by some bank boards. Reports in late August raised questions about statements concerning available liquidity during delays in public salary payments. Officials are checking whether the information accurately reflected each bank’s financial position.
The Iraq banking investigation comes as the government faces continued pressure over public spending and cash management. Public salaries and social welfare payments reportedly require more than 7.4 trillion dinars each month. Any major disruption in state bank liquidity could therefore affect government payment schedules.
Rafidain and Rasheed play a central role in Iraq’s public banking system. Their financial operations affect government institutions, businesses, employees, and other customers. For that reason, authorities want clearer information about large credit exposures and cash movements.
The probe also seeks to protect state-owned assets and strengthen financial controls. Investigators are reviewing whether lending decisions created risks for public funds and depositors. They are also assessing whether banks maintained adequate safeguards against financial losses.
Authorities may pursue legal measures after completing the financial reviews. Possible actions could include asset freezes, travel restrictions, and arrest warrants. However, such measures would depend on the evidence gathered and decisions by the competent judicial authorities.
The investigation could therefore have wider implications for Iraq’s banking sector. It may prompt stronger oversight of major loans and discretionary approvals. It could also increase scrutiny of how state banks manage liquidity and public money.
The Iraq banking investigation highlights growing attention toward financial governance within state institutions. Its findings may determine whether officials or borrowers breached established rules. Authorities are expected to rely on documented financial evidence before taking further action.