Iraq's Central Bank Reassures Depositors: Funds Protected, Supervision Not Indicative of Bankruptcy

The Central Bank of Iraq (CBI) on Saturday reassured depositors in local banks, affirming their funds are fully protected and that guardianship measures do not signify bank bankruptcy. This statement aligns with the CBI's pivotal role in safeguarding the financial system and ensuring a sound banking sector offering optimal financial services. The CBI clarified that imposing supervisory or guardianship committees on any licensed bank, a direct authority of the Bank, constitutes a precautionary and legal regulatory measure. This action aims to ensure the bank's safety, operational stability, and specifically protect depositors' rights, thereby refuting inaccurate information circulating about bankruptcy. The Central Bank underscored its commitment to applying the best international banking standards to ensure the sector's safety, compliance, and delivery of excellent financial services without impacting customer rights. It stressed that all licensed banks participate in the Deposit Guarantee Company, a key pillar of banking stability, which compensates depositors if a bank fails to meet obligations under effective laws. Moreover, the CBI confirmed that depositors' funds are protected by current laws, regulations, and instructions. The Bank closely monitors bank procedures, particularly ensuring depositors can access their funds anytime without delay. The Iraqi banking system maintains sufficient liquidity to manage operations efficiently under potential pressures, with liquid assets to short-term liabilities exceeding 60%.