A decline in cash credit and deposits in Iraqi banks during the first half of 2026
Official data showed a decline in total deposits and cash credit in Iraq up to the end of May 2026, while the private sector continued to take the largest share of bank financing. Iraqeconomy updates
According to data seen by Shafaq News Agency, total deposits at banks reached 104.296 trillion dinars by the end of May 2026, compared to 104.727 trillion dinars in April and 105.090 trillion dinars in March, reflecting a continued decline for the third consecutive month.
The deposits were distributed between 31.791 trillion dinars for the central government, 22.890 trillion dinars for public institutions, while private sector deposits amounted to 49.615 trillion dinars, constituting about 47.6% of total deposits.
In contrast, total cash credit recorded 73.173 trillion dinars by the end of May, compared to 73.637 trillion dinars in April, and 73.832 trillion dinars in March.
Credit granted to the central government amounted to 23.420 trillion dinars, while credit provided to public institutions reached 2.424 trillion dinars, while the private sector accounted for 47.329 trillion dinars, or approximately 65% of total monetary credit.
An increase in deposits is an indicator of growing confidence in the banking sector among individuals and businesses, as deposits provide banks with the necessary liquidity to finance economic activities. Credit, on the other hand, represents loans and facilities granted by banks to the government and the public and private sectors. Its growth, particularly that directed to the private sector, is a significant indicator of support for investment and production, and of stimulating economic activity. Conversely, a continued decline in deposits and credit may reflect a slowdown in economic activity and a reduced capacity of banks to finance projects.
Shafaq.com