The Central Bank announces a comprehensive plan for banking reform.
The Central Bank announces a comprehensive plan for banking reform.
2025-08-13
Central Bank Governor Ali Al-Alaq announced a comprehensive banking reform plan on Tuesday.
A statement from the bank stated, “The Governor of the Central Bank of Iraq, Ali Mohsen Al-Alaq, and the relevant team held a meeting with Oliver Wyman to discuss the contents of the Iraqi Private Banks Association’s letter regarding the banking reform plan.”
The statement added that Al-Alaq confirmed that “the Central Bank completed an extensive discussion in which attendees expressed an understanding of the points contained in the letter and ways to flexibly adapt some of the plan’s provisions to facilitate implementation. The company has begun studying available means to present the best proposals and ideas in this regard as soon as possible.”
The statement emphasized that “the Central Bank, as announced during the months-long plan preparation period, aims to achieve a real project to build and stabilize the banking sector to operate safely and effectively, in accordance with international practices and standards and local laws, in order to enhance governance, compliance, and risk management, to transition banks to an economic role that enhances the development process and provides services with the highest levels of efficiency and effectiveness, using the best practices and modern technologies.”
He continued, “The Central Bank affirms that the plan will enhance local and international confidence in the Iraqi banking sector, particularly since implementing the plan and adhering to its provisions will lead to the restoration of relationships between all banks that meet the plan’s requirements and internationally accredited correspondent banks, particularly those that do not currently have international banking relationships.”
According to the statement, the Central Bank thanked all banks for their engagement with the plan and fruitful cooperation with the Central Bank to achieve shared goals in the public interest, stressing that “the success of the plan depends on the cooperation of all concerned parties.”
He pointed out that “the bank has succeeded in many aspects during the past period and hopes to succeed in proceeding with this plan and completing it in the best possible way.”
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