CBI: foreign banks are required to register the names of Iraq to open branches

The Central Bank of Iraq, Tuesday, on its requirement for banks Alajnah wishing to open branches in the country register the names of Iraqi banking companies, noting that he preferred to deal with these banks because of their high level in the banking business.

The deputy governor of the Central Bank of the appearance of Mohammed Saleh in an interview with ” Twilight News “that” the Iraqi Banking Act No. 94 of 2004, allows the granting of licenses not only to domestic banks, but allows for the opening of branches of foreign banks. “

Saleh added that “the central bank granted a license to open 14 branches of foreign banks in Iraq since 2005 to 2012, provided that those banks are recorded the names of Iraqi banking companies.”

And the appearance of that “foreign banks have a high level of financial improvement and use of banking instruments well, and that the Iraqi public would prefer not to deal with interest and profit which will give these banks dealing in foreign economic and clear.”

The central bank is an independent body to regulate the banking sector to promote a competitive financial system, independent of government and private banks and foreign.

Iraq seeks to support the banking system by closing the deficit of local banks to cover the financial guarantees required by the investment companies, which represent the problem of limiting the entry of companies specialized in the electricity sector, infrastructure and services.

In Iraq, there about seven state banks and 34 banks waged, mostly owned by foreign banks, two banks and two government controlled the banking system in Iraq are the Rafidain Bank and Rasheed Bank.