ARTICLE AD BOX
The Parliamentary Finance Committee stressed the need to reach an understanding with the World Bank and the US Treasury regarding the evaluation of Iraqi banks’ performance, to avoid any “sudden” decisions that could negatively impact the country’s banking sector.
This came in a speech delivered by Finance Committee Chairman Atwan Al-Atwani on Monday during his participation in the Iraq Banking Sector Development Conference, attended by Prime Minister Mohammed Shia Al-Sudani and in cooperation with Oliver Wyman, in Baghdad.
Al-Atwani congratulated the Central Bank of Iraq’s management on the launch of the “Banking Sector Development Project,” noting that it “represents a starting point for a comprehensive reform of the financial and monetary systems, based on solid scientific foundations, and paves the way for achieving sustainable development and economic reform.”
The Chairman of the Finance Committee noted the committee’s commitment to supporting the Central Bank’s efforts to promote sustainable financing concepts, encourage public and private banks to finance economic activities and development projects, and diversify sources of income, thus contributing to reducing the financial deficit in public budgets. He added that “the banking sector is the cornerstone for driving the national economy and combating corruption.”
Al-Atwani emphasized that developing this sector “is a cornerstone of the economic reform project and a pivotal step in the transition to a diversified economy, away from excessive reliance on oil revenues.” Discussing maximizing non-oil revenues, he explained that “the introduction of modern banking systems into the Tax and Customs Administration contributes to improving financial transaction tracking mechanisms, enhances revenue collection efficiency, and reduces tax evasion, in addition to closing informal outlets that drain the state’s resources and weaken its ability to invest and provide services.”
Al-Atwani also emphasized that rebuilding confidence in the banking system and expanding the scope of digital transactions, both domestically and internationally, requires developing the banking sector’s infrastructure and enhancing its cybersecurity. Furthermore, the reform process requires establishing genuine partnerships with international banks and institutions and regulating foreign remittances to ensure compliance with international standards.
The head of the Finance Committee called for “the necessity of formulating a clear understanding with the World Bank and the US Treasury, establishing the principle that the Central Bank of Iraq is the body authorized to evaluate banks’ performance, ensure their compliance, and punish violators, to avoid any sudden decisions that would negatively impact the banking sector.”
Al-Atwani concluded his remarks by emphasizing the need for a comprehensive “reform revolution” beginning with the banking sector, emphasizing that “this requires genuine political will, institutional cooperation, and a strategic vision that goes beyond temporary solutions.” He also called for collective responsibility for reforming the banking sector, “considering it a national priority that touches on national security and financial stability, directly impacts citizens’ livelihoods, achieves social justice, and ensures the future of future generations.”
The United States announced sanctions on a group of Iraqi banks, including Rafidain Bank, for allegedly smuggling US dollars to sanctioned countries, most notably Iran. The US called on the Iraqi government to implement reforms at these banks as soon as possible.
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