Iraqi Bank Capital Hits 21.4T Dinars Despite Credit Risk
Iraqi banking sector capital exceeded 21.4 trillion dinars while the sovereign rating remained at B-minus.
Key points
- Iraqi banking sector capital surpassed 21.4 trillion dinars with total assets at 155 trillion dinars.
- The sovereign credit rating is B-minus, placing Iraq one notch above the CCC default-risk category.
- The financial system comprises 73 banks, including 55 private institutions and 11 foreign branches.
Iraqi banking sector capital reached 21.4 trillion dinars as reported by IraqiNews. This growth occurred while the sovereign credit rating stayed at B-minus.
Aggregate banking assets totaled 155 trillion dinars according to league data. The country faces high borrowing costs due to its credit standing.
Sovereign credit risk remains elevated
Fitch Ratings classifies Iraq as high-risk with a B-minus rating. This places the nation one notch away from CCC status.
The rating implies severe exposure to external macroeconomic shocks. It also reflects a thin fiscal safety cushion for the state.
Higher bond yields are required to attract international investors. Debt insurance costs rise significantly under these credit conditions.
Banking network spans 73 institutions
The domestic system includes 73 operating banks in total. This count covers state-owned and private commercial entities.
Fifty-five private banks operate alongside seven state-owned institutions. Eleven foreign bank branches also serve the local market.
Eighteen electronic payment providers support the financial ecosystem. Three microfinance entities and 458 remittance bureaus complete the network.
Macro indicators frame the banking context
Iraq’s population stands at 46 million per recent census data. The IMF estimates nominal GDP at 264 billion dollars.
