The Central Bank of Iraq (CBI) has confirmed that final licenses for digital banks are expected to be issued by the end of 2027 or early 2028, after the current banking reform process is completed.
CBI spokesperson Mahmoud Dagher told the state-run Iraqi News Agency that organizations that have already received preliminary approval to establish digital banks have been informed about the expected timeline for final authorization.
The banking reform process is currently being led by Oliver Wyman. In October 2025, the CBI had received around 80 applications from organizations interested in setting up digital banks in Iraq.
However, not every applicant will receive a license. The CBI will assess applications based on several factors, including market research, the type of business being proposed, and experiences in other countries. Dagher noted that many countries have only three or four digital banks.
Earlier in 2025, CBI officials and Oliver Wyman representatives discussed a banking reform proposal submitted by the Iraqi Private Banks League (IPBL). The proposal aims to modernize Iraq’s banking sector and bring its operations closer to international standards.
The reform strategy is designed to make the banking sector more stable, secure, and efficient. It also focuses on improving governance, compliance, risk management, and the implementation of local laws.
The CBI believes these changes will help build greater confidence in Iraq’s banking sector among both local and international financial institutions.
The central bank has also reached an agreement with Oliver Wyman to review why certain Iraqi banks have been restricted from carrying out US dollar transactions.
As part of this work, Oliver Wyman is reviewing banking procedures and developing plans to bring banks that were barred from dollar transactions back into the financial system. The goal is to help them resume operations both inside Iraq and internationally.