An international classification places the Iraqi banking system in the “high-risk” category, and an expert warns.
An international classification places the Iraqi banking system in the “high-risk” category, and an expert warns.
2025-05-01 01:04
Shafaq News/ The international credit rating agency Standard & Poor’s has classified Iraq’s banking system as “high risk,” a financial expert commented on the matter.
The agency stated in a report seen by Shafaq News Agency that it “takes into account economic risks, the structure, resilience, and stability of the country, actual or potential imbalances in the economy, and credit risks arising from economic participants, especially households and companies,” noting that it “classifies the banking system from 1, which is the least risky, to 10, which is the most risky.”
She added, “The banking system in Iraq was classified as ‘high risk’ in field 10 and was given a B- rating, alongside Nigeria and Ukraine.”
The agency continued, “The institutional framework and economic credit in Iraq are considered very high risk, in addition to the competitive dynamics and financing at the system level, which are considered high risk.”
In this regard, financial expert and former director general of the Central Bank of Iraq, Mahmoud Dagher, told Shafaq News Agency, “This classification has been the same for several years,” adding, “The significant risks make the classification this high because there are risks facing the Iraqi regime, relative instability, and the nature of the conflict in the region.”
He explained that “this also stems from sanctions on banks and transfer problems, in addition to public finance problems. We have a public finance deficit and debt. These are all indicators that, when combined, give us this credit rating.”
shafaq.com
