The Iraqi Central Bank has announced the rise in the CBI assets to more than 120 trillion Iraqi dinars. It clearly indicated increasing confidence of depositors in banks. Alsumaria News reported that the Central Bank of Iraq issued a statement, it says, “The assets of banks during 2018 rose by 10% compared to 2017 to exceed 120 trillion dinars, equivalent to 100 billion dollars. It clearly indicates an increase in the confidence of depositors in banks. The current condition positively reflects on the evolution of the performance of banks and its contribution to the development of the Iraqi economy”.
The statement further said, “Its strategic actions have contributed mainly to increasing confidence in the banking sector and improving the rates of financial coverage. It reflected on the growth rate and the rise of bank assets and deposits steadily”. The statement of CBI also added, “This rise came from mutual trust between citizens and the banking system from during the development of attracting cash deposits and commercial operations to banks more. The Bank has made accounting adjustments to the total assets of commercial banks in accordance with international accounting standards as of January 2012”.
It is noteworthy that the IMF (International Monetary Fund) has called on the Iraqi government to cut spending on the electric power sector as well as a comprehensive reform of the banking sector. The Iraqi Central Bank said in a statement that the IMF called for the opportunity to take advantage of improved security conditions and high oil prices, to implement policies and structural reforms, which ensure economic stability. The IMF Executive Board concluded Article IV consultations with Iraq indicates that current spending was expected to rise by 27% in 2019, year-on-year. The IMF stressed that the implementation of the reduction of subsidies to the electricity sector. It is a priority in the control of spending and protects the poorest and the least income from vulnerability to financial controls.