Central Ban Banks Have Chosen Their Path in Reform Process and New Initiative to Enhance Their Capabilities

The Central Bank of Iraq announces the completion of the principal step in the comprehensive reform process of commercial and Islamic banks, as well as branches of foreign banks, through the submission of the required documentation for review in accordance with the “Minimum Requirements.” These requirements necessitate banks to select one of three pathways: to continue operating in the market as independent banking institutions, to merge with other banking institutions, or to exit the market.

CBI confirms that all Iraqi banks have submitted the required documentation in line with the pathway they have chosen, enabling CBI to assess the extent to which they meet the minimum requirements. In the coming months, banks will address any identified gaps and will work diligently to achieve full compliance with the reform standards.

CBI also announces a new initiative aimed at expanding the capacity of private banks to support their clients’ international trade activities. Banks that meet specific criteria, in accordance with the Central Bank of Iraq’s assessment, will be permitted to resume cross-border transactions and issue letters of credit in multiple international currencies, including the euro, UAE dirham, Chinese yuan, Jordanian dinar, and others.

This step comes as a continuation of the path charted by the Central Bank of Iraq to enhance confidence in the future of the Iraqi economy and the global interconnectedness of the financial sector, and to lead the sustainable growth for Iraq.