"SUDANI REMOVES THE BAD BANKS & CONSOLIDATES THE GOOD BANKS FOR THE MONETARY REFORM" by FRANK26, 1 AUGUST

 KTFA

FRANK26:"SUDANI REMOVES THE BAD BANKS & CONSOLIDATES THE GOOD BANKS FOR THE MONETARY REFORM".........F26

Alia Nassif: The Central Bank's policy is pushing Iraqi banks towards execution!

Execution of Iraqi banks with licenses for foreign banks

7/31/2024

 

MP Alia Nassif strongly criticized the measures taken by the Central Bank of Iraq against local banks, considering that these measures contribute to “the execution of Iraqi banks.”

Nassif explained in a tweet on the X platform, which was followed by “Al-Mustaqilla” , that the Central Bank granted licenses to two foreign banks, namely the Arab Jordanian Bank and the Emirates Union, to operate in Iraq, and they will start their operations at the beginning of next September, alongside the National Bank. She also indicated that licenses will be granted to two other banks, one Kuwaiti and the other Qatari.

She said that these steps come at a time when many Iraqi banks continue to suffer, as their activities have been suspended and more have been closed as a result of the policies of the Central Bank. She expressed her dissatisfaction with the Central Bank’s management, which did not address the problems accumulated in the banking sector during previous periods, but rather worked to bring local banks into contracts with K2 and pay money without achieving tangible results.

Nassif pointed out that the Iraqi banking sector is now being punished for mistakes made in previous years under the supervision of the same current management of the Central Bank. She wondered why this same management was not held accountable for its failure to perform its supervisory duties during that period.

These statements come amidst a state of ambiguity and anxiety that dominates the banking sector in Iraq, which suffers from instability and declining confidence. The entry of foreign banks into the Iraqi market raises questions about the future of local banks and their ability to compete in light of the current challenges.

The move is part of the government’s efforts to attract foreign investment and boost the financial sector, but there are concerns that it will come at the expense of struggling local banks. Some MPs and experts are calling for a review of banking policies and providing the necessary support to local banks to enhance their competitiveness and achieve financial stability.

In light of these developments, the future of the Iraqi banking sector remains dependent on the decisions and policies that the Central Bank and the government will take to achieve a balance between attracting foreign investments and supporting local banks.

 

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