Economy Update – Baghdad
The Central Bank of Iraq has announced an increase in the ratio of total cash credit to total bank deposits for institutions operating within the country.
According to a statement released by the Central Bank, the credit-to-deposit ratio serves as a crucial metric for assessing bank liquidity. This ratio compares the total amount of credit extended by banks to their total deposits. In the fourth quarter of 2024, this ratio rose to 59.3%, up from 51.9% in the same period of 2023. The Central Bank highlighted that this upward trend indicates banks are effectively leveraging client deposits to generate profits through credit offerings. It is worth noting that a portion of this increase may stem from heightened credit extended to the government and central authorities.
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