FINANCIAL INCLUSION IN IRAQ: A SUCCESS STORY THAT DEFIES THE ODDS
In the wake of the American invasion of Iraq in 2003, the financial system collapsed and the phenomenon of hoarding money spread, as a result of the loss of confidence in the banking sector after the closure of most branches of foreign banks operating in Iraq, and the faltering of some local banks.
To address this crisis, the Iraqi Deposit Insurance Company began establishment procedures in 2008 with the aim of protecting depositors’ funds and enhancing their confidence in the banking system, which is vital for achieving sustainable economic development.
The company has achieved remarkable success in its mission, as it has witnessed a significant increase in the number of bank accounts and the size of deposits since its establishment. In 2009, total deposits in Iraqi banks amounted to $8.05 billion, and this number rose to $76.5 billion in 2021. This significant increase is largely due to the company’s efforts to enhance confidence in the banking system and encourage citizens to save.
This significant increase in deposits clearly reflects the effective role played by the company in stimulating the culture of savings and encouraging citizens to deposit their money in banks instead of keeping it at home. These numbers indicate that the Iraqi Deposit Insurance Company is on the right track towards achieving its strategic goals, which are enhancing financial stability and reducing the phenomenon of hoarding, and thus contributing to advancing economic growth in Iraq.
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