Wednesday, October 9, 2024

The Central Bank continues to effectively implement banking reform plans, 10 OCT

 Based on the decision of the Council of Ministers to approve the National Strategy for Bank Lending in Iraq on 18/8/2024, which was launched by the Central Bank on 25/5/2024, where the Supreme Executive Committee of the Strategy began its work and held its first meeting under the chairmanship of the Governor of the Central Bank, which is a clear announcement on the beginning of the actual phase of implementing its strategies for banking reform, which includes what is contained in its third strategy, the National Lending Strategy, environmental and community standards and the mesotical governance of banks.

A clear roadmap was drawn in agreement with Oliver Wyman International to start developing the banking sector. This means that it has completed the first phase of the banking reform process, which is to draw up policies, programs and standards, and determine the main and sub-goals of the transition to achieve the completed reform to achieve tangible and important results in the field of regulating the financing of foreign trade and regularization of the global financial system through strict adherence to international compliance standards, 

building sober international banking relations with international banks and correspondent banks, and introducing the local currencies of countries with important trade exchange with them to deal with their local currencies in addition to dealing in the US dollars. As well as activating and strengthening its procedures in the transition from the monetary economy to the digital economy and cooperating with the government in expanding the use of electronic payment tools and spreading the culture of transition to a cash society.

Certainly, the above tasks have occupied a great space of efforts at the local and international levels. Within the map of reform, which is led by the Central Bank with the cooperation and support of the government and the support of the Prime Minister personally, the focus will be on restructuring government and private banks that does not allow the existence of troubled and non-sobtr banks, and starting to implement new policies to support and develop micro, small, 

medium and large enterprises and support youth, according to the National Lending Strategy, according to achieving two main objectives. The first is to increase the credit granted to the private sector by 4% of the non-oil GDP until 2029 and the equivalent of 7 trillion dinars, and the second is to increase credit to finance micro, small and medium-sized enterprises by 3% of the non-oil GDP and equivalent to 5 trillion dinars (5% of the gap in financing),

 which contributes to the operation of 100,0 thousand projects to activate and stimulate Economy and achieving development in addition to starting with the establishment and authorization of Riyada Bank and the green bank’s license, which will specialize in sustainable financing of renewable energy projects, as well as going to the license of digital banks to keep pace with progress in the field of modern digital banking products.

The online platform will also be left gradually this year. One of the tasks that will begin to be done is to rehabilitate banks restricted from dealing in US dollars to comply with international standards in light of the work of the joint committee between the Central Bank and the US Treasury, through which international audit companies will also analyze and audit the work of these banks in the activity of foreign transfers for previous years in the hope that restrictions will be lifted on them. What is expected from the measures and policies adopted by the Central Bank and achieved and what will be achieved later will be reflected in achieving economic stability by overcoming the challenges of stability in the financial system and the monetary system, which will contribute to the stability of the exchange rate and the recovery of the Iraqi dinar inevitably.


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Added 2024/10/09 – 11:21 AM

https://economy-news.net/content.php?id=48513


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