CBI launches major private banking reforms
Shafaq News/ On Monday, the Central Bankof Iraq (CBI) announced a comprehensive set of reforms to overhaul thecountry’s private banking during the Iraqi Banking Sector Reform Conference inBaghdad.
According to CBI’s statement, theinitiative, developed in coordination with private banks, the Iraqi government,and consultancy firm Oliver Wyman, targets three core objectives: expandingaccess to financial services, improving operational efficiency, and bolsteringrisk management. The plan outlines measures to broaden ATM and branch networks,modernize payment infrastructure, promote financial literacy, and enhanceanti-money laundering and counter-terrorism efforts using digital identitytools.
The plan also enforces a unifiedregulatory framework across all licensed banks, structured around four pillars:governance, business model sustainability, financial performance, andregulatory compliance, CBI noted, adding, “Ownership limits, boardindependence, leadership suitability, and greater transparency in audits andrelated-party transactions will be mandatory.”
Additionally, the bank stated that privatebanks will be required to align their business models with national economicobjectives and comply with international capital and liquidity standards,affirming, “Detailed business plans must be submitted as part of thisalignment.”
Implementation will begin with an initialevaluation phase in early 2026, CBI clarified, pointing out that it willpublish a full timeline in the coming months and host workshops to supportinstitutions through the transition.
CBI stressed that “the success of thisplan depends on the active involvement of all stakeholders,” adding that boththe CBI and the government will lead the implementation phase.
