RASHID BANK’S CAPITAL JUMPS FROM 2 BILLION TO 50: WHAT ARE THE REASONS? AND IS TIMING RELATED?, 19 FEB

RASHID BANK’S CAPITAL JUMPS FROM 2 BILLION TO 50: WHAT ARE THE REASONS? AND IS TIMING RELATED?

Today, Thursday (February 13, 2025), banking and financial expert Alaa Al-Fahd revealed the reason for increasing the capital of Rashid Bank at this time.

Al-Fahd told Baghdad Today, “This measure is part of the government’s reform of banking policy by expanding the size of banks and their participation in economic development. There is a reform policy that the government is pursuing with the Central Bank of Iraq, with the assistance of international companies, in order to develop banking work and increase bank branches. Therefore, there was an obligation to increase capital according to the requirements of the stage.”

He explained that “today the capital (2) billion dinars does not match the current reality, due to the number of branches and shareholders owned by Rashid Bank, and therefore increasing the bank’s capital will contribute to classifying the current situation and contribute to improving the current reality.”

The banking expert added, “This increase is the beginning of restructuring the banks, especially Rafidain and Rashid banks, and making them at a level that meets the ambition of the current stage, and is at the level of development and the level of the needs of the Iraqi economy.”

The Federal Council of Ministers, during its session last Tuesday, approved increasing the capital of Rashid Bank from 2 billion dinars to 50 billion dinars, from the bank’s expansion reserve account, with the Iraqi Ministry of Finance taking the necessary measures for implementation.

Earlier, the government announced ambitious plans to restructure government banks, most notably Rafidain and Rashid Banks, with the aim of transforming them into more modern and efficient financial institutions capable of meeting the needs of the growing Iraqi economy.

The Council of Ministers also decided in its session held on January 13, 2025 to establish a completely new bank, based on the latest digital banking technologies, and aiming to provide integrated banking services to individuals and companies, both inside and outside Iraq.