Eco
In a move aimed at bolstering confidence in the local financial sector, the Central Bank of Iraq (CBI) issued a reassuring statement to depositors on Saturday, emphasizing that their funds in Iraqi banks are secure and protected. The statement also clarified that imposing guardianship or supervisory measures does not signify bank bankruptcy, contrary to some widely circulated narratives. The Central Bank elaborated on its pivotal role in safeguarding the financial system and ensuring a sound banking sector built on competitiveness and the provision of optimal financial services. It affirmed that its authority to implement supervisory or guardianship committees on any licensed bank constitutes purely legal and precautionary regulatory measures. The objective is to ensure the bank's overall safety and operational stability, specifically protecting depositors' rights, rather than indicating financial distress or insolvency. The statement further stressed that the CBI applies the best international banking standards to ensure compliance and superior service delivery without compromising client rights. To reinforce this framework, it highlighted that all licensed banks are integral participants in the Deposit Guarantee Company (DGC), a fundamental pillar of banking stability. The DGC guarantees compensation for depositors should any bank fail to meet its obligations, in strict accordance with prevailing legal frameworks. Moreover, the Central Bank affirmed that depositors' funds are comprehensively protected under existing laws, regulations, and instructions. It noted its keen interest in closely monitoring bank procedures, particularly those ensuring depositors' access to their funds at any time they wish, without delay. The statement concluded by asserting that the Iraqi banking system possesses sufficient liquidity, enabling it to efficiently manage operations even under potential pressures, with the ratio of liquid assets to short-term liabilities exceeding 60%.
