A parliamentary committee identifies weaknesses in the banking sector: cash stocks are stored in homes.
A parliamentary committee identifies weaknesses in the banking sector: cash stocks are stored in homes.
6-10-2025
Information / Baghdad..
Member of the Parliamentary Economy and Trade Committee, Kazem Attia Al-Shammari, confirmed on Tuesday that there is a clear weakness in the Iraqi banking system. He pointed out that a large amount of cash in circulation remains outside the banking system and stored in citizens’ homes, exacerbating the liquidity crisis facing the government.
Al-Shammari told Al-Maalouma News Agency that “the lack of citizen confidence in the banking system continues to constitute a real obstacle to the development of this sector,” noting that “the banking window system suffers from a clear defect, which negatively impacts the performance of banks.”
He added that “huge amounts of cash are stored in citizens’ homes, far from banks, which has led to weak monetary flows and a decline in liquidity in the official market, hindering the state’s ability to finance some of its obligations.”
Al-Shammari pointed out that “the Iraqi banking sector still lags behind modern banking standards and lacks effective financial activities. Many banks also fail to fulfill their obligations to customers, which deepens the trust gap and prevents deposits.”
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