By John Lee.
The Central Bank of Iraq (CBI) has issued a statement reassuring depositors that supervisory measures imposed on licensed banks do not indicate insolvency, and that depositors' funds remain protected under existing laws and regulations.
According to the CBI, the appointment of supervisory or receivership committees at a licensed bank is a precautionary regulatory measure intended to safeguard the bank's stability and protect depositors' rights, not a sign of bankruptcy, contrary to claims circulating on some social media platforms.
The CBI set out the following assurances:
- All licensed banks participate in the Deposit Guarantee Company, which compensates depositors in the event a bank is unable to meet its obligations under applicable law.
- Depositors' funds are protected under current laws, regulations, and instructions.
- The CBI closely monitors banks' procedures to ensure depositors can access their funds at any time without delay.
- The Iraqi banking sector has sufficient liquidity to manage its operations efficiently under any potential pressures, with liquid assets representing more than 60% of short-term liabilities.
(Source: Central Bank of Iraq)
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