CBI announces an increase in cash credit to total deposits in Iraqi banks
The Central Bank of Iraq. Photo: INA
Baghdad (IraqiNews.com) – The Central Bank of Iraq (CBI) announced on Monday that cash credit grew in 2023 compared to total deposits in the Iraqi banking sector.
The CBI mentioned in a statement that cash credit grew by 52 percent compared to the total deposits in the Iraqi banking sector in 2023, according to the Iraqi News Agency (INA).
The statement confirmed that cash credit increased by 47 percent in 2022 and by 55 percent in 2021.
The increase did not exceed the standard percentage, which is 75 percent.
The goal of the standard percentage is to keep banks’ liquidity levels high enough to handle consumer withdrawals and carry out financial banking operations.
A cash credit is a bank account that allows an organization to take out cash without maintaining a credit balance. It is a short-term loan that the bank extends to an organization.
The amount that may be borrowed with this account is merely the borrowing limit. Furthermore, interest is assessed based on the actual amount borrowed rather than the maximum.