The Central Bank of Iraq announced a rise in the cash credit-to-deposit ratio, which reached 59.3% in Q4 2024, up from 51.9% in Q4 2023. This indicates improved liquidity and banks’ effective use of customer deposits for credit, potentially aided by increased lending to the government and central bank.
On Tuesday, the Central Bank of Iraq (CBI) reported an increase in the cash credit-to-total deposits ratio for banks operating within the nation. The central bank noted that this crucial metric, which gauges bank liquidity by comparing credit volume against total deposits, rose to 59.3% in the fourth quarter of 2024, up from 51.9% in the same quarter of the previous year.
The CBI highlighted that this uptick symbolizes the effective use of customer deposits by banks to generate profit through credit issuance. Analysts suggest that part of this growth may be attributed to increased lending to the government and the central bank, signaling a proactive approach by financial institutions in leveraging deposited funds for economic advancement.
In summary, the Central Bank of Iraq has announced a significant increase in the cash credit-to-deposit ratio, indicating enhanced bank liquidity and effective utilization of customer deposits for lending. This trend could potentially bolster the financial sector’s contributions to the economy, particularly through government support and increased credit activity.
Original Source: ina.iq