Objective of the Committee
Iraqi Government's Initiative to Enhance Banks' Compliance with International Standards
On September 19, 2024, the Iraqi Prime Minister, Mohammed Shia Al-Sudani, announced the formation of a high-level committee aimed at aligning Iraqi banks with international financial requirements. This initiative reflects the government's commitment to advancing economic reforms and supporting the private sector, particularly the banking industry.
The committee's primary objective is to develop strategies and measures that ensure Iraqi banks meet global financial standards. Al-Sudani emphasized the need for strong domestic banks adhering to these standards to contribute effectively to the country's development.
Relationship with Financial Institutions
The Prime Minister directed the Private Banks Association to foster balanced relationships with financial institutions, Arab banks, and investors to strengthen the banking sector. This directive is crucial for the sector's growth and its ability to support Iraq's economic vision.
Collaboration with International Experts
Al-Sudani also highlighted that the Central Bank of Iraq has contracted with Oliver Wyman, a global management consulting firm, to assist in the development of the banking and financial sector. This collaboration is expected to bring in international expertise and best practices.
Challenges and Opportunities
Iraq's banking sector faces challenges, including the need for modernization and diversification, as noted in the BTI 2024 Iraq Country Report. The formation of this committee presents an opportunity to address these challenges and enhance the sector's competitiveness on a global scale.
Economic Outlook
According to the IMF's 2024 Article IV Consultation with Iraq, the country's economy is experiencing a strong recovery. The fiscal expansion, which began in 2023, has supported the non-oil economy's growth. However, the report also highlights the need for sound macroeconomic policies and structural reforms to ensure long-term stability and economic diversification.
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