Iraq is embarking on a comprehensive restructuring of its banking sector with the assistance of main worldwide consultancy companies, according to Dr Salih Salman, marketing consultant to the Iraqi top Minister, talking at the Iraq Britain Business Council (IBBC) Spring conference in London on Tuesday.
The Iraqi authorities has appointed Ernst & young to restructure six of the u . s .’s seven nation-owned banks, along with the industrial bank, real estate bank, Rafidain financial institution, and Rasheed financial institution.
The trade bank of Iraq (TBI) has separately engaged K2i and KPMG to assist restructure its internal and external operations to meet worldwide requirements.
Dr Salman revealed that Rafidain financial institution, Iraq’s biggest nation-owned institution, might be reincarnated as the First Rafidain financial institution with authorities participation decreased to less than 24 in line with cent. The last stocks can be provided to private banks and global buyers. The restructuring plan is expected to be finalised and accepted with the aid of the Iraqi authorities via the end of the yr.
The private banking area is also present process reform following a contract signed between the central bank of Iraq (CBI) and Oliver Wyman. This two-to-3-year project will result in tips for non-public banks to either exit the arena, observe international requirements, or merge with other establishments.
Iraq has made vast progress in electronic charge structures adoption, with financial inclusion growing from much less than 10 percentage in 2018-2019 to approximately forty percentage presently. The quantity of debit and credit cards has reached 60,000-70,000, while bank debts have grown to 22-23 million.
From June 2025, all government payments could be made electronically, with cash payments prohibited throughout authorities establishments. The Iraqi authorities has released consciousness campaigns to inspire public adoption of electronic fee structures, transferring far from the conventional coins-based totally lifestyle.
The government has additionally delivered the Riyada programme, operated in partnership with the important financial institution of Iraq, to offer financing and training for small and medium organizations. The initiative gives a registration platform where contributors can access education and capacity financing opportunities.
Dr Salman emphasised that Iraq remains open to foreign funding and global consultancy services across all sectors, along with legal, monetary, accounting, auditing, and compliance offerings. The reforms goal to combine Iraqi banks into the global economic gadget after a long time of isolation due to sanctions and frozen assets.
seeing that November 2022, all bank transfers in Iraq have been processed via a primary bank platform in cooperation with the Federal Reserve of america, marking Iraq’s re-access into international economic structures. The usa now works with about 30 remote places banks, even though demanding situations continue to be in establishing worldwide banking relationships.
The comprehensive banking reforms constitute a sizeable shift closer to global requirements and extra non-public zone participation in Iraq’s financial sector.
