Joint statement from the Office of the Prime Minister and the Central Bank of Iraq, 5 FEB

 Joint statement from the Office of the Prime Minister and the Central Bank of Iraq

Banking reforms constituted an important pillar of the economic reform adopted in the government program, and in order to complete the important steps initiated by the government in this context since it started its work, and in order to achieve the package of development targets that requires a banking development, 

the government, in cooperation with the Central Bank of Iraq, embarked on a comprehensive initiative that includes an integrated strategic banking reforms process, which constitutes a landmark moment in the history of economic development in Iraq, and is commensurate with the extent of commitment to raising the level of banking standards, enhancing financial flexibility, and supporting the competitiveness of the financial system.

These comprehensive reforms aim to keep pace with developments in the countries of the region and the world, contribute to opening partnerships, and the prospects of communicating with the outside world widely in modern banking and financial transactions, as the Central Bank works in an effort to implement and develop regulatory and regulatory frameworks with international partners, contributing to achieving sustainable growth and development of the banking sector, just as the government is working to support the reforms and efforts of the Central Bank of Iraq in developing the state of the banking sector.

These reform efforts have been based on the following main areas:

1. Strengthening ownership structures and governance frameworks, by promoting transparency and accountability, including through the creation of diverse ownership structures and ensuring independent oversight of boards of directors over processes and committees.
2. Raising the level and standards of service, by increasing access to basic financial services for all members of the Iraqi people, by enhancing efficiency, increasing the supply of products and modernizing the infrastructure of the banking sector.
3. Harmonization and compliance with international standards, by enforcing compliance with recognized frameworks and practices in the fields of anti-money laundering and countering the financing of terrorism, as well as commitment to financial transparency in order to ensure the smoothness of banking services and support business and the needs of citizens.
4. Enhancing financial resilience, by enhancing the financial integrity of Iraqi banks and setting strong capital and cash requirements, to protect customer deposits and protect the economy in the face of domestic and international challenges.

This initiative comes within the framework of a broader strategy aimed at modernizing the banking sector, which the Central Bank of Iraq is currently developing in partnership with Oliver Wyman, a leading international company in the field of management consulting. The ongoing reforms being implemented with government banks enhance the integration of that strategy, representing a turning point in the future of the Iraqi financial system.

Operational details of these reforms will be presented later.
From this point of view, the government and the Central Bank confirm the adoption of a joint reformist vision, which is to establish a modern, transparent and comprehensive banking system that supports the aspirations of the dynamic economy of the Iraqi state.