Joint Statement by the Office of the Prime Minister and the Central Bank of Iraq
Joint Statement by the Office of the Prime Minister and the Central Bank of Iraq
2025-02-04
The government, in cooperation with the Central Bank of Iraq, announced today, Tuesday, February 4, 2025, the launch of a comprehensive initiative for banking reforms, noting that “this step comes as part of the government program that aims to modernize the banking sector and make it more competitive at the local and global levels.”
According to the joint statement issued by the Prime Minister’s Office and the Central Bank, received by “Baghdad Today”, the new reforms include an integrated strategic process that constitutes a turning point in the history of economic development in Iraq. These comprehensive reforms aim to keep pace with developments in the countries of the region and the world, and contribute to opening up broader horizons of communication with the outside world in modern banking and financial transactions.
These reform efforts focused on several main areas, according to the statement:
1- Strengthening ownership structures and governance frameworks, by enhancing transparency and accountability, through the creation of diverse ownership structures and ensuring independent oversight by boards of directors over operations and committees.
2- Raising the level and standards of service, by increasing access to basic financial services for all members of the Iraqi people, through enhancing efficiency, increasing the supply of products, and modernizing the infrastructure of the banking sector.
3- Harmonization and conformity with international standards, by imposing adherence to recognized frameworks and practices in the areas of combating money laundering and combating the financing of terrorism, as well as adherence to financial transparency.
4- Enhancing financial flexibility, by enhancing the financial safety of Iraqi banks and setting strong requirements regarding capital and cash liquidity, to protect customer deposits and protect the economy in the face of local and international challenges.
The statement noted that “the Central Bank is working to implement and develop regulatory and supervisory frameworks in cooperation with international partners, while the government is working to support the Central Bank’s reforms and efforts to develop the banking sector.”
He added, “This initiative comes within the framework of a broader strategy aimed at modernizing the banking sector, as the Central Bank is currently working to develop it in partnership with Oliver Wyman, a leading global management consulting company.”
The government and the Central Bank confirmed “adopting a joint reform vision, which is to establish a modern, transparent and comprehensive banking system that supports the aspirations of the dynamic economy of the Iraqi state. The executive details of these reforms will be presented at a later time,” noting that “this initiative constitutes an important step towards achieving sustainable economic growth and enhancing confidence in the Iraqi financial system, which opens new horizons for cooperation and partnerships at the international level.”
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