At a Glance:

• The Central Bank of Iraq (CBI) has reaffirmed that all depositor funds at Al-Taif Islamic Bank remain fully protected under Iraqi banking law.
• Placing Al-Taif under conservatorship is a temporary regulatory intervention, not an indicator of insolvency, designed to stabilize operations and protect client assets.
• In coordination with appointed conservator Imad Muhammad Hamad, cash withdrawals and financial obligations will be managed gradually, giving immediate priority to public sector salaries domiciled at the bank.
• The regulator urges citizens and media outlets to disregard circulating online rumors and rely exclusively on official CBI channels.

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The Central Bank of Iraq (CBI) issued an official statement assuring the public that the rights and funds of depositors at Al-Taif Islamic Bank are fully protected following the institution's placement under conservatorship. Clarifying that the measure is a preventive, legal intervention rather than a declaration of insolvency, the central bank confirmed it is actively working with the appointed conservator to manage cash liquidity and execute financial disbursements in a structured, prioritized manner.

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Key Statements and Focus Area:

• Central Bank of Iraq Official Statement:
  "Placing Al-Taif Islamic Bank under conservatorship is a preventive regulatory measure designed strictly to protect depositors' funds, preserve their rights, and ensure the continuity of essential banking operations. Working alongside the appointed conservator, liquidity and cash withdrawals will be handled gradually, prioritizing the salaries of public sector employees domiciled at the bank."

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Operational Parameters of Al-Taif Conservatorship

Regulatory Indicator	Details & CBI Directives
Institution Affected	Al-Taif Islamic Bank for Investment and Finance
Regulatory Action	Placement under CBI conservatorship (Resolution No. 130 of 2026)
Appointed Conservator	Imad Muhammad Hamad (18-month term)
Top Payment Priority	Public sector employee payroll disbursements
Withdrawal Strategy	Phased and structured liquidity management

Regulatory Rationale and Liquidity Safeguards

The decision to place Al-Taif Islamic Bank under conservatorship follows administrative reviews identifying serious internal violations that impacted the bank's operational position. Citing Article 59 of Banking Law No. 94 of 2004, the CBI intervened to prevent further asset degradation and shield account holders from financial loss.The central bank stressed that system-wide bank liquidity remains robust, and placing a licensed lender under guardianship is a routine supervisory mechanism to enforce compliance and protect public trust.

Withdrawal Framework and Payroll Distribution

To prevent panic-driven capital flight and maintain operational stability, the CBI and conservator Imad Muhammad Hamad are implementing a gradual withdrawal schedule. Public servant salaries processed through Al-Taif under the national payroll scheme will receive immediate clearance, ensuring civil servants face no disruption in accessing their monthly income. Remaining retail and corporate financial claims will be settled incrementally based on approved regulatory criteria.

FYI

By framing the conservatorship of Al-Taif Islamic Bank as a targeted regulatory cleanup rather than a systemic failure, the Central Bank of Iraq aims to preserve public confidence in the national financial network. Prioritizing public sector payrolls mitigates immediate social friction, while the enforcement action reinforces the CBI's stance on strict oversight and anti-corruption compliance across licensed private banks.

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