The Central Bank announces a comprehensive reform project for the private banking sector, 9 APRIL

 The Central Bank announces a comprehensive reform project for the private banking sector

Economy |  04/07/2025  Mawazine News – Baghdad  The Central Bank of Iraq (CBI) unveiled reform plans aimed at modernizing the Iraqi private banking sector and building a robust, modern, and resilient banking sector that drives economic growth and enhances financial inclusion, in partnership with Oliver Wyman Consulting.

The plans include strengthening and deepening financial inclusion in Iraq, raising the efficiency and productivity of the private banking sector, and creating a fair and healthy competitive environment in the market, while enhancing the sector's resilience and ability to withstand risks.

According to a CBI statement, this project will contribute to enhancing the protection of depositors and creditors, while financial education campaigns will help restore confidence in dealing with banks.

Payment systems will be modernized to facilitate efficient and reliable transactions for both businesses and individuals, in addition to expanding the financial infrastructure, including increasing the network of branches and ATMs.

The CBI statement indicated that a prerequisite for the success of the plans is requiring all banks to comply with a set of standards and participate actively in the sector's transformation process.

The Central Bank confirmed that the key banking standards to be implemented will set maximum ownership limits to prevent excessive control (concentration) by any single entity or related parties, in addition to ensuring the presence of competent and independent boards of directors, with suitability tests being applied to all key leadership positions.

Banks will be required to adopt sustainable and viable business models by submitting consistent detailed business plans, strategic plans, financial forecasts, organizational structure, technology implementation plans, and operational management plans.

Capital adequacy and liquidity ratios will be maintained in line with global best practices to ensure banks' resilience in the face of financial crises.

The reform process will be a multi-stage journey, during which private banks will be assessed for their compliance with the required standards at various stages of the reform process. The first evaluation cycle is expected to begin in the first quarter of 2026. https://www.mawazin.net/Details.aspx?jimare=260609