Rafidain Bank: There are no indications of any liquidity crisis or banking panic.
Rafidain Bank: There are no indications of any liquidity crisis or banking panic.
2025-05-04
Rafidain Bank confirmed on Saturday that its financial position is strong and solid, with a legal reserve of more than 8 trillion dinars deposited with the Central Bank of Iraq. The bank also indicated that there are no indications of any liquidity crisis or banking panic.
The bank said in a statement: “Rafidain Bank is not just a bank, but a sovereign pillar of the country’s economy. Since its establishment in 1941, it has remained steadfast in serving citizens and the state, weathering all economic and political crises without any hesitation in fulfilling its obligations. It is not just a financial institution, but an extension of the state’s identity and a center of trust for more than 12 million citizens.”
He stressed that “talk about ‘deposit differences’ is incomplete and misleading,” explaining that “bank deposits are not held as raw cash, but rather are managed within a precise banking operating system that includes: retail loans, government bonds, small business financing, and liquidity investment according to financial safety standards. Circulating information outside this context confuses public awareness and undermines confidence.”
He added, “There are no indications of any liquidity crisis or banking panic,” stressing that “the financial position of Rafidain Bank is strong and solid, with a legal reserve of more than 8 trillion dinars deposited with the Central Bank of Iraq. Liquidity is available, deposits are secure, and there are no emergency withdrawal requests or operational imbalances.”
He pointed out that “a bank’s reputation is not just a brand, but a national asset. We recognize that a bank’s reputation is not measured solely by assets, but also by the depth of the relationship between a bank and its community. Rafidain Bank has maintained its commitment to citizens in the most difficult circumstances, and today it embodies the financial confidence of the Iraqi state.”
He continued, “We do not accept comparisons with banking collapses in other countries,” explaining that “comparisons between Rafidain Bank and banks that collapsed in other countries lack objectivity. Rafidain Bank is not exposed to foreign markets, does not hold speculative debts, and operates under the direct supervision of the Central Bank of Iraq, with a clean record of obligations.”
The bank warned of “the danger of being dragged into political and media controversy,” stressing that “the banking sector cannot tolerate smear campaigns or fragmented rumors. Unstudied skepticism could undermine public confidence, something we warn against and reject. There is a difference between professional criticism and irresponsible media escalation.”
He added, “He carried out radical and strategic reforms to return to the international arena, including initiating a comprehensive modernization of his systems:
• Contracting with EY and K2 Integrity to develop governance and compliance.
• Adoption of the Oracle Flexcube global banking system.
• Operating modern AML and KYC systems.
• Opening international correspondence channels in preparation for a confident return to the global financial system.
The statement concluded, “We are not asking for special protection, but we are asking that the bank be left out of the circles of controversy. It is an institution for all Iraqis, and its silence in the face of crises does not reflect its weakness, but rather its maturity and loyalty to the people. Let us preserve what remains of our trust in state institutions.”
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