Financial and banking expert Abdul Aziz Hassoun is urging the Central Bank of Iraq to step in more firmly and bring real control to the banking sector, saying citizens’ rights are at risk under the current system.
Hassoun explained that Iraq’s banking sector is working in an unstable environment, which has stopped it from doing its job properly. He said security problems, weak economic conditions, and social instability are the main reasons behind this situation. These issues, he noted, have badly hurt public trust in banks—especially government banks.
Because of this lack of trust, many citizens avoid depositing their money. That leads to a shortage of cash inside the banking system, which then slows down economic activity across the country.
He also warned that many banks are no longer doing real banking work. Instead, he said, they are taking advantage of the chaos to chase personal profits, often outside the rules set by the Central Bank and at the expense of national banking policy.
Hassoun stressed that the Central Bank must act now by enforcing strict rules and serious oversight. He said this is the only way to protect citizens’ money and rebuild confidence in the banking system.
He added that one major reason for the weak performance of Iraqi banks is that financial revenues are mostly used for imports instead of being invested inside the country. This, he said, keeps the banking sector stuck and prevents real growth.
