Most Iraqi Banks Meet New Capital Requirements

Most of Iraq’s 34 private banks have met the central bank’s 30th June deadline to reach the 150 billion Iraqi dinar ($128.8 million) capital requirement, reports Reuters.

The schedule drawn up in 2009 required the banks to reach capital levels of 100 billion Iraqi dinar by the end of June 2011 (which most of them did), 150 billion Iraqi dinar by June 2012, and 250 billion Iraqi dinar by June of next year.

Abdul-Aziz Hassoun, executive director of the Iraqi Private Banks League, said “80 percent of the banks have increased their capital, some of them have increased it even more than the required levels“.

The banks which did not succeed in raising their capital have asked the central bank for a grace period until the end of the year, Mudher Kasim, deputy governor of the Central Bank, said. “We are not very strict in this issue…but at the same time we cannot give a hint that our decisions could be rolled back“, he added.

Hassoun said he would prefer the central bank to encourage failed banks to merge.

(Source: Reuters)