Iraqi private banks rely on CBI for “easy profits,” lack economic activity, expert says, 17 DEC

Iraqi private banks rely on CBI for “easy profits,” lack economic activity, expert says

Shafaq News/ Most Iraqi private banks still "depend" on the Central Bank of Iraq (CBI) without engaging in any economic activity, banking expert Mohamed Salem confirmed on Monday. 

Salem told Shafaq News Agency, “Most private banks engage in limited credit activities and do not contribute significantly to stimulating the Iraqi economy. Their revenue primarily comes from currency exchange, relying on electronic trading, hard currency, and electronic payments. They obtain dollars from the CBI, sell them, and make easy profits.”

"While private banks have stepped back from offering loans, they have led in electronic trading and providing services like ATMs and other digital services, areas where government banks have lagged,” he added. 

He explained that "private banks' services have encouraged employees to localize their salaries, while government banks, except the Trade Bank of Iraq, have struggled with low salary localization."

"Despite their failure to keep pace with international or even private banks, government banks remain trustworthy in safeguarding depositors' funds, even in the face of challenges such as the theft and looting they experienced in 2003,” the expert emphasized.