Institution: Total assets of the Iraqi banking system rise to approximately 275 trillion dinars
Institution: Total assets of the Iraqi banking system rise to approximately 275 trillion dinars
2025-10-04 02:10
Shafaq News – Baghdad
The Iraq Future Foundation for Economic Studies and Consultations reported on Saturday that the total assets of the banking system reached approximately 275 trillion Iraqi dinars at the end of the first half of 2025, registering a 5% increase compared to the end of the first half of 2024, according to data released by the Central Bank of Iraq.
The institution’s chairman, Manar Al-Obaidi, said in a post today that this increase is primarily due to an increase in reserves and capital, which grew by 26% during the same period, despite a 4% decline in the money supply and an 8% decline in other deposits.
Asset distribution
The assets of the Iraqi banking system were distributed as follows:
Foreign reserves: They constituted 58% of total assets, despite a 10% decrease compared to the same period last year.
Government debt: It accounted for 13% of total assets, recording a significant jump of 116% compared to the first half of 2024.
Private sector debt: represented approximately 20% of total assets, an increase of 15% compared to the same period last year.
Thus, the share of debt (government and private) rose to 32% of total assets.
Compared to 2024
According to Al-Obaidi, a comparison with the first half of 2024 indicates a significant change in the structure of assets. Foreign reserves represented 68% of total assets at the time, while government debt did not exceed 6%, and private sector debt accounted for only 18%. Consequently, the total debt share at the time did not exceed 24% of assets.
The head of the institution continued by saying that the clear shift in the structure of assets, in favor of debts at the expense of reserves, has significant implications for the stability of the Iraqi banking system. If this trend continues, the debt ratio could exceed half of total assets in the coming period. He concluded by saying that concern is growing, especially with the rise in the volume of government debt, most of which is directed towards financing operating expenses rather than being invested in productive projects capable of generating returns that contribute to repaying these obligations.
shafaq.com
