The Central Bank issues a report on deposits and clarifies the banking situation in Iraq

The Central Bank issues a report on deposits and clarifies the banking situation in Iraq



Monday 20 November

Al-Sumerian News / Baghdad
According to a report by the Central Bank, on Monday, the decline of bank deposits for 2016, indicating that the government deposits concentrated in Rafidain Bank , pointing to the weak contribution of the banking sector in GDP, pointing out that Iraq needs to increase branches of banks to deliver banking services To the largest population.

The report prepared by the Central Bank of Iraq , the financial deposits for the year 2016 according to Heer Findel Index - Hirschman "recorded a decline of up to 62.4 trillion dinars , compared to $ 63.3 trillion dinars in 2015, and the decline in the banking volume of assets of 222.8 trillion dinars in 221.2 trillion dinars . " , Indicating that "most of the assets concentrated in the Rafidain Bank, which means that there is a monopoly by it will reflect negatively on the Rafidain Bank and the banking system in general."

The report added that "most of the government deposits concentrated in the Rafidain Bank and by 2392 points out of 3050 points, as is the case for assets," noting that "the rise of banks' capital to 11.7 trillion dinars in 2016, after it was 10.1 trillion dinars in 2015 as a result of the establishment 8 new private banks, including 7 Islamic banks and one foreign commercial bank.

The report pointed out that "the financial safety indicators showed the rate of capital adequacy of the banking sector amounted to 128% for 2016 compared to the same for 2015, amounting to 106%," stressing that "this high ratio reflects the capacity and efficiency of the banking system, which is higher than the percentage determined by the Committee Basel, which is 8% and the central bank's 12% rate. "

The report pointed out that "the volume of banking spread has not changed significantly during the past years, reaching in 2016, 2.81, or about 3 branches per 100 thousand people, which means that Iraq needs to increase the number of branches of banks in order to access banking services to the largest number "The ratio of loans to the private sector to GDP will rise to 9.2 percent in 2016, revealing the weak contribution of the banking sector to GDP."

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