Almost impossible… Iraqi banks are threatened with closure due to the Central Bank’s new conditions.
Almost impossible… Iraqi banks are threatened with closure due to the Central Bank’s new conditions.
8-10-2025
Al-Maalouma/Baghdad..
Economic expert Mustafa Hantoush considered, on Sunday, that the requirement to raise the capital of Iraqi banks to 400 billion dinars, in addition to the necessity of having a foreign partner, are “almost impossible conditions” at the current stage, especially with foreign investors reluctant to enter the Iraqi market due to the political and economic instability.
Hantoush said in a statement to Al-Maalouma, “Implementing these standards requires a more open investment environment and deeper reforms to the economic and legal infrastructure,” stressing that “a number of Iraqi banks provide good services and deserve support and incentives, not to be subjected to strict standards that could lead to their closure.”
Hantoush called on the Central Bank of Iraq to “adopt a gradual reform plan that takes into account the reality of the local market and balances between protecting the banking sector and stimulating its growth,” stressing that “financial policies must focus on enhancing the competitiveness of national banks rather than weakening them.”
This comes amid moves by the Central Bank to grant new licenses to foreign banks, a move some see as an attempt to increase competition and improve services, while others warn it could exacerbate the challenges facing local banks.
almaalomah.me
