Baghdad: Official symposium discusses banking sector reform amid sanctions and challenges
Baghdad: Official symposium discusses banking sector reform amid sanctions and challenges
2025-09-01 08:23
Shafaq News – Baghdad
The Center for Trade and Economic Studies, affiliated with the Iraqi Ministry of Trade, organized an expanded symposium on Monday to discuss reforms related to the private banking sector and develop a shared vision between Iraqi banks and international experts.
The symposium, titled “Central Bank Reform and the Vision of Private Banks,” was attended by a group of economic experts, including the Prime Minister’s Advisor for Economic Affairs, Mazhar Mohammed Saleh, who explained that “the government program approved by the House of Representatives in October 2022 included various reforms, including banking reform.”
According to Saleh, “the process of reforming government banks, which control approximately 80% of Iraqi banking activity, has begun,” stressing to Shafaq News Agency that “private banks are fragmented and heterogeneous, some isolated, and others sanctioned.”
He noted that “this symposium reflects the government’s vision for reforming both public and private banks, and reviews and discusses the most important steps taken in this regard.”
The economic advisor noted that “the international firm that submitted its own study on banking reform is nearing the end of its work, and work is currently underway to evaluate market interactions with the firm’s findings in its study to identify the strengths and weaknesses of the study’s findings, with the goal of advancing banking reform toward the best.”
He pointed out that “gradual reform of Iraqi banking is the best way to avoid any new shocks that the sector may not be able to withstand,” explaining that “the success of banks lies primarily in gaining the community’s trust in local banks.”
The Central Bank of Iraq had previously contracted with Oliver Wyman to conduct reviews and studies related to the Iraqi banking sector as part of a plan to modernize and develop the sector.
For his part, economic expert Mustafa Hantoush, who participated in the symposium, said that it “discussed the reality of banks, reform solutions, the Central Bank’s flexibility with banks, and monitored their impact over the coming period.”
According to Hantoush, “At the conclusion of this symposium, recommendations will be submitted to the Prime Minister, the Governor of the Central Bank, and the Minister of Trade to consolidate the reform process through steps that can be adopted to develop this vital sector, especially since the Central Bank of Iraq has made significant progress in this area.”
Among these recommendations, Hantoush told Shafaq News Agency, “The Central Bank’s continued flexibility with the private banking sector, commensurate with the banks’ capabilities, and the removal of sanctioned banks from the circle of sanctions and restrictions, in addition to the need for the banking system to engage in banking operations and generate profits.”
It’s worth noting that the Iraqi banking sector faces a host of challenges, including corruption, red tape, and a failure to keep pace with technological advancements. Furthermore, the difficulty of integrating into the international banking system due to US sanctions is compounded by the sector’s challenges.
shafaq.com
