Iraq’s Central Bank Reports Drop in Deposit Growth and Rise in Credit Volume

Deposit Growth Declines, but Credit to Private Sector Sees Modest Increase

Baghdad (IraqiNews.com) – The Central Bank of Iraq reported a decline in the growth of deposits across local banks for September 2025, while credit volume saw a modest increase, according to official statistics released on Wednesday.

Total deposits within Iraq’s banking sector reached 113.928 trillion dinars in September, marking a decrease of 1.82% compared to 115.997 trillion dinars in August. The central government’s deposits amounted to 35.398 trillion dinars, while public institutions held 25.531 trillion dinars in deposits. The private sector accounted for the largest portion, contributing 52.999 trillion dinars to the total deposits.

In contrast to the slowdown in deposit growth, total credit extended by Iraqi banks rose by 0.57%, reaching 73.942 trillion dinars in September, up from 73.521 trillion dinars in August.

A breakdown of the credit data reveals that credit extended to the central government stood at 26.392 trillion dinars, while public institutions received 2.431 trillion dinars in financing. The private sector continued to be the primary recipient, with 45.119 trillion dinars in total credit.

These figures suggest that Iraqi banks remain focused on expanding credit despite the slowdown in deposit growth. This emphasis on credit expansion is seen as a response to current economic conditions, aiming to sustain financial activity and support economic growth in the face of ongoing challenges.