💰🏦 “Iraqi Banks Face Major Capital Challenge — Extension Likely!” ⏳📈

2 months ago 4

ARTICLE AD BOX

📅 Financial Update – August 19, 2025 | Banking Reform in Progress

⚠️ Critical Phase for Iraqi Banks

🔹 Capital Increase Deadline May Be Extended

Economist Mustafa Akram Hantoush says the deadline for Iraqi banks to raise capital (previously end of 2025) will likely stretch to three years due to ongoing reforms.

🔹 Oliver Wyman’s In-Depth Study Completed

The consulting firm’s final report proposes major mechanisms to solve banking issues and regulate dollar transactions — currently being negotiated with the Central Bank.

💡 Key Reform Recommendations

🔹 Raise capital of all Iraqi banks to 400 billion dinars (~$306 million).
🔹 Banks to pay $2.4 million over four years under conditions like merger, liquidation, or capital restructuring.
🔹 Limit relatives’ ownership stake to max 10% to improve governance.

🤔 Challenges Ahead

🔹 Sanctioned banks face serious hurdles to meet these conditions.
🔹 Dialogue expected between Central Bank and banks to find compromise solutions — possibly extending deadlines or adjusting amounts to bank capacities.