The Central Bank of Iraq said in a September 5 statement that placing a bank under supervision or trusteeship does not mean it is bankrupt; it described the measure as a legal precaution intended to support stability and protect depositors. The bank said all licensed banks participate in the deposit insurance company and that deposits are protected under applicable laws and regulations.

The central bank also said liquid assets across Iraq’s banking system exceed 60% of short-term liabilities. This is the bank’s statement about the system as a whole; the release does not detail individual institutions or explain the ratio’s calculation method. It distinguishes a supervisory action concerning one bank from a declaration of bankruptcy.