The Iraqi Central Bank asks banks to increase their capital or “merger and liquidation”
The Iraqi Central Bank asks banks to increase their capital or “merger and liquidation”
2023-08-03 03:08
Shafaq News/ The Central Bank of Iraq asked local and foreign banks to increase their capital, or to “merge or liquidate” in case they are unable.
A document issued by the bank, seen by Shafaq News agency, showed that, “Based on the decision of the bank’s board of directors No. 27 of 2023 in its session numbered 1628 held on 7/18 2023, it was decided to increase the banks’ capital to no less than 400 billion dinars within a maximum period of January 31. The first is 2024, and in three installments, provided that each installment is not less than 50 billion dinars on December 31, 2023, June 30, 2024, and December 31, 2024.
The document added that the bank may make the increase in one payment within a maximum period of December 31, 2023, noting that “the operating capital of foreign bank branches is increased by no less than 60% of the operating capital during a maximum period of December 31, 2023.”
And the Central Bank stressed in its document that, “in the event of non-compliance with the instructions, it initiates the merger or is subject to acquisition or liquidation.”
In 2010, the Central Bank called on banks to increase their capital to (250) billion dinars, and in the event that the capital is not completed to the required level within the specified period, the license granted to the bank will be cancelled.
The central bank complains about Iraqi banks of their inability to exercise credit and the small size of the banks and asked them several times to merge.
shafaq.com
