Birth of a new banking entity in Iraq.. A government advisor reveals the details to Euphrates News
Birth of a new banking entity in Iraq.. A government advisor reveals the details to Euphrates News
2025/01/10
The financial advisor to the Prime Minister, Mazhar Muhammad Salih, revealed a study being conducted by a global consulting firm, commissioned by the state, to restructure Rafidain and Rashid Banks, which constitute 85% of the banking market in the country.
Saleh explained to Al Furat News Agency that “the two banks suffer from a historical legacy of challenges, which requires a comprehensive reform plan to reposition them within the map of effective and efficient banking work.”
Saleh added, “The study aims to establish a new banking entity specializing in government banking operations, to meet the government’s needs exclusively. This entity will contribute to achieving the goals of the unified treasury account, which is a crucial tool for regulating cash flows for public finances.”
He pointed out that “the study focuses on evaluating the legal status of the two banks, including property rights, evaluating assets and liabilities, and studying the requirements of a strategic partner if necessary, with a focus on developing the two entities to operate according to advanced financial technology that meets the requirements of the national banking market.”
He stressed that “the structural reform also aims to enhance the integration of the two banks into the national banking market and enable them to expand into global financial markets, especially in the areas of trade and investment financing for the private sector.”
He added that “the two potential entities will rely on modern systems in compliance, governance and risk management, with a focus on digital payments.”
He concluded by saying: “The study is expected to be submitted to the higher official authorities in the coming months, within the framework of implementing the government’s financial and banking reform programme, which aims to achieve a comprehensive economic renaissance and build modern financial institutions.”
Earlier today, Thursday, Prime Minister Mohammed Shia Al-Sudani chaired a special meeting to discuss developing the work of government banks, in the presence of representatives of Ernst & Young for auditing and financial consulting.
The Prime Minister explained that the percentage of completion of the project to restructure Rafidain Bank has reached its final stages, stressing that it will enter into force within the next few days, within the framework of a plan that has been studied and implemented according to the established standards and specifications.
alforatnews.iq
