The Central Bank of Iraq (CBI) announced that the credit-to-deposit ratio for banks operating in Iraq has seen a notable increase. This ratio, which measures the liquidity of banks by comparing the volume of credit granted to total deposits, reached 59.3% in the fourth quarter of 2024. This marks a significant rise from 51.9% in the same period the previous year.
According to a statement from the CBI, this increase highlights that banks are effectively utilizing their deposits to generate profits by providing credit. The bank also noted that part of this rise could be attributed to the increased credit extended to the government and the central bank.
The CBI emphasized that this positive shift reflects a healthy and growing banking sector, as banks continue to manage liquidity while expanding credit.