Tuesday, December 12, 2023

Iraqi Banking Sector Witnesses Significant Growth: Reports, 12 DEC

 Iraqi Banking Sector Witnesses Significant Growth: Reports

In a remarkable development, the Iraqi Private Banks Association has reported a significant surge in the banking sector, attributing the growth to substantial support from the government and the Central Bank of Iraq. The association’s executive director, Ali Tariq, highlighted that the number of bank accounts, payment cards, and electronic payment devices all registered substantial increases.

Impressive Growth in Banking Metrics

By the end of the third quarter of 2023, the number of bank accounts had grown by 14% to over 10 million. This is a significant increase from slightly below 9 million at the end of 2022, indicating the creation of more than 1.2 million accounts in less than a year. Furthermore, current accounts saw a growth of 17.7%, while savings accounts and fixed deposit accounts rose by 11% and 4.6% respectively.

Card Usage and Electronic Payments on the Rise

The issuance of payment cards also saw an upward trajectory, increasing by 14.2% with the issuance of 2.3 million new cards in the past nine months. This brings the total number of cards in circulation to 18.5 million. In addition, point-of-sale devices and ATM machines also registered significant growth, increasing by 117% and 30.5% respectively.

Driving Economic Reform

These developments are part of the economic reform efforts in Iraq, aimed at encouraging citizens to trust and use banking services rather than keeping cash at home. This is evidenced by the Central Bank of Iraq issuing currency worth 24 trillion Iraqi dinars during 2022 and 2023, but a significant amount of this currency, approximately 93 trillion dinars, remained outside the banking system. This aligns with the report by the Future of Iraq Institute for Economic Studies, which noted that the cash hoarding in Iraq soared to a record 93 trillion dinars in 2023.

https://bnnbreaking.com/finance-nav/iraqi-banking-sector-witnesses-significant-growth-reports/

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