Central Bank of Iraq Denies Bank Insolvency

The Central Bank of Iraq issued a statement clarifying that the appointment of supervisory committees or custodians over licensed banks does not imply their insolvency. The institution emphasized that these are purely regulatory and precautionary measures aimed at ensuring bank safety, operational stability, and the protection of depositors' rights. According to the Central Bank, all licensed banks participate in the Deposit Guarantee Company, which is responsible for compensating depositors should a bank fail to meet its obligations. The bank further stated that the Iraqi banking system maintains sufficient liquidity levels, with the ratio of liquid assets to short-term liabilities exceeding 60 percent. However, financial advisor Amer al-Adad noted that public distrust and the tendency to hold a large portion of liquidity outside the banking system remain long-standing challenges, rooted in historical events and currency restrictions.