The Central Bank of Iraq has reported an increase in the credit-to-deposit ratio from 51.9% to 59.3% between 2023 and 2024, indicating improved bank liquidity and effective use of customer deposits for extending credit.
The Central Bank of Iraq (CBI) announced an increase in the credit-to-deposit ratio for banks operating within the country. This increase has risen from 51.9% in the fourth quarter of 2023 to 59.3% in the fourth quarter of 2024. The CBI emphasized that this ratio is a vital indicator of a bank’s liquidity, demonstrating how effectively banks are utilizing customer deposits to generate profits through credit issuance.
In summary, the CBI’s report highlights a favorable trend in the banking sector, indicating that banks are increasingly efficient in leveraging customer deposits to extend credit. This rise in the credit-to-deposit ratio not only reflects improved liquidity but may also be linked to the banks’ support of government and central bank financing needs.
Original Source: ina.iq
