The Central Bank of Iraq clarified that placing a licensed bank under a supervisory committee or guardianship is a legal precautionary measure to protect the bank’s operations and depositors, not an indication that the bank is bankrupt. It also reaffirmed that depositors’ funds are protected under applicable laws, regulations and instructions. All licensed banks participate in the Deposit Guarantee Company, which compensates depositors if a bank cannot meet its obligations in accordance with applicable law. The central bank said it monitors banks to ensure depositors can access their funds without delay and reported that the banking system’s ratio of liquid assets to short term liabilities exceeds 60%.
2026-09-05Central Bank of Iraq
Central Bank of Iraq clarifies bank oversight measures do not signal insolvency, cites liquidity ratio above 60%
The Central Bank of Iraq clarified that supervisory committees or guardianship imposed on licensed banks are precautionary measures and do not signify bankruptcy. Deposits are legally protected and covered through the Deposit Guarantee Company, while systemwide liquid assets exceed 60% of short term liabilities.