The Prime Minister outlines three steps to implement comprehensive banking reform according to a balanced vision.
The Prime Minister outlines three steps to implement comprehensive banking reform according to a balanced vision.
2025-08-10
Prime Minister Mohammed Shia al-Sudani, on Sunday, highly appreciated the efforts made by the Central Bank of Iraq in preparing the banking reform document, while identifying three steps to implement the comprehensive banking reform process according to a balanced vision. The official spokesman for the Iraqi government, Bassem al-Awadi, said in a statement that “Prime Minister Mohammed Shia al-Sudani was briefed on the latest developments related to the banking reform paper, especially those related to private banks. In light of the observations and responses he received in this regard, he highly appreciated the efforts made by the Central Bank of Iraq in preparing the banking reform document, which aims to enhance financial stability, achieve transparency, and raise the efficiency of the banking sector.”
The Prime Minister also affirmed, according to the statement, “the government’s support for all reform initiatives that would strengthen the structure of the financial system in Iraq in line with international best practices. At the same time, he paid great attention to the objective observations and challenges facing local banks in implementing some provisions of the reform document, contained in the letter of the Iraqi Private Banks Association, dated August 3, 2025, particularly those related to capital increase requirements, the approval of the strategic partner, and the costs of contracting with foreign companies, in addition to the binding timelines in light of the proposed reform process.”
He continued: “Based on this, the Prime Minister stressed the importance of adopting a participatory and consultative approach between the Central Bank and Iraqi banks, through the formation of joint technical committees concerned with reviewing reform requirements and ensuring their compatibility with the national financial and economic reality, in a manner that maintains a balance between reform requirements and the capabilities of Iraqi banks, and protects the interests of local and international investors and workers in this vital sector.” He reiterated his emphasis on “support and appreciation for all sincere national and international efforts exerted in this vital path.”
Meanwhile, the Prime Minister stressed the importance of implementing the comprehensive banking reform process according to a balanced vision, through the following steps: opening an expanded dialogue between the Central Bank of Iraq and Iraqi banks to clarify the technical aspects of the document, discussing possible implementation mechanisms and their gradual progression, taking into account the specificity of the Iraqi reality when applying international standards, emphasizing the need to adhere to reform in principle, and the need for standards and procedures to be formulated in a manner that enhances confidence in the banking sector and contributes to its development, and working to reassure the banking community through clear messages, confirming that the goal of reform is not exclusion but empowerment, and that the doors of discussion are open in a way that serves the public interest and the Iraqi economy.
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