Deposits and credit declined in Iraqi banks during 2026

Data from the Central Bank of Iraq showed a decline in total deposits and credit in the banking sector during the first four months of 2026.

According to bank data seen by Shafaq News Agency, total deposits in the banking sector decreased during the first four months to 104.727 trillion dinars by the end of April 2026, compared to 111.065 trillion dinars at the end of 2025, a decrease of 6.338 trillion dinars.

According to the data, central government deposits decreased to 31.517 trillion dinars compared to 36.497 trillion dinars at the end of 2025, and private sector deposits also decreased to 48.924 trillion dinars compared to 50.644 trillion dinars, while public institutions’ deposits increased to 24.286 trillion dinars compared to 23.924 trillion dinars.

In contrast, total credit reached 73.637 trillion dinars at the end of April 2026, down from 75.584 trillion dinars recorded at the end of 2025.

Credit was distributed as follows: 23.915 trillion dinars to the central government, 2.486 trillion dinars to public institutions, while the private sector accounted for 47.236 trillion dinars of total credit.

The data indicates a relative contraction in liquidity within the banking sector during the first four months of 2026, with a decline in both deposits and credit, which may reflect an expansion in government spending and a relative slowdown in credit activity.

Shafaq.com